Customer lifetime value (CLV) is a metric that estimates the total value a business can expect from a single customer over their entire relationship with the brand. It's a bottom line metric that can be very beneficial in determining how much you should be spending on marketing, customer acquisition and retention. It can also help you segment your customers so you can market to them differently. To find customer lifetime value you need to calculate the average order value and then multiply it by the average number of customer purchases and then multiple that by retention time (months)

The formula for CLV = AOV * Repeat Purchases * Retention Time