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Customer Lifetime Value
The Customer Lifetime Value is the value of a customer that can be earned by building a long-term relationship. This is the contribution margin, which is realized since a buyer is a customer of the company. A distinction is made between potential and actual customers lifetime value. While only the expenditure that the customer has concluded with the company is considered, the potential Customer Lifetime Value includes the expenditure that the customer concludes at competitors. Knowing the lifetime value of its customers, you can optimize your attention. Customers with high customer lifetime value and thus with a higher potential should be more intensively cared for than customers with a low customer lifetime value.