What are Customer Lifetime Value and Churn Rate?

The online world has become a huge part of every business. As a business strategist, you need to be aware of how well your brand performs on all of your digital platforms. After being armed with smart metrics and analytics tools, drilling down your users’ preferences, and once you have figured out the ways to satisfy them. The next big step is knowing the customer’s lifetime value and churn rate.

This blog will mainly focus on two critical concepts—the customer lifetime value(CLV) and churn rate. A deeper understanding of these factors will help you know how to maintain your website’s success and make better business decisions.

Customer Lifetime Value Statistics

• A 5% more retention generates a 25% more increased profit.
• Gaining a new user is between 5x and 25x more expensive than retaining an existing user.
• The ratio of converting an existing user is between 60%-70%.
• Existing users spend 67% more on average than new customers.
• 76% of businesses see CLV as an important factor for their organization

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