CLV (Customer Lifetime Value)
Customer Lifetime Value (CLV or LTV) is the total gross profit a business expects from a single customer across the entire relationship.
A workable retail and restaurant approximation: CLV = Average order value × Gross margin × Purchase frequency per year × Expected years retained.
CLV sets your ceiling for acquisition spend and your budget for rewards. If a customer is worth ₹6,000 in gross profit, spending ₹300 in reward value to keep them is arithmetic, not generosity.
Track this without a spreadsheet
OrdrPro Loyalty identifies customers at billing, so metrics like this update on their own — with or without our POS.