Customer Lifetime Value (CLV) tells you how much a buyer is worth over their whole relationship with your marketplace, not just on their first order. Compare it against customer acquisition cost to judge whether growth spending pays back. Marketplaces with high repeat usage and strong liquidity tend to see CLV climb as buyers return to a reliable supply of listings.
Customer Lifetime Value (CLV)
The total revenue a buyer generates across their entire relationship with your marketplace.
What it is
Formula
CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan