KPI guide

What is customer lifetime value? Definition, formula & how to track it

Customer lifetime value explained: what it means, how to calculate it, why it matters, and how to track it automatically with a governed AI analyst.

Book a demo →See the customer lifetime value dashboard
✓ Plain-English definition✓ Formula & benchmark✓ Track it automatically
Customer lifetime value

Understanding customer lifetime value

Customer lifetime value is a key business metric. Here’s how to define and use it.

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What it is

Customer lifetime value measures a core part of business performance and is tracked over time.

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How to calculate

Define customer lifetime value once in a governed layer so the formula is consistent everywhere.

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Track it automatically

Analytify computes customer lifetime value live and explains changes in plain English.

FAQ

Frequently asked questions

What is customer lifetime value?+
Customer lifetime value is a key performance indicator that measures an important aspect of business performance. Analytify tracks it with a single governed definition so every team sees the same number.
How do I calculate customer lifetime value?+
Define customer lifetime value once in Analytify’s governed semantic layer; from then on it’s computed consistently across every dashboard and answer.
How do I track customer lifetime value automatically?+
Connect your data to Analytify and it tracks customer lifetime value live, letting you ask plain-English follow-ups about why it changed.
Why does customer lifetime value matter?+
Customer lifetime value is a signal of business health; watching it over time helps teams catch problems and opportunities early.
Is there a free version?+
Yes — the open-source Community Edition is free forever for self-hosted use.

Track customer lifetime value on your data

Book a 15-minute demo — we’ll set up customer lifetime value tracking live and answer your questions.

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