Customer Lifetime Value $($CLV$)$ is particularly important when it comes to CRM and is often considered one of the most crucial metrics associated with a CRM system. Collecting data on customers and their relationships with a company $($and commonly storing it within a CRM system$)$ helps make it possible to calculate CLV$,$ or the total amount a customer will spend throughout their relationship with a company.

After a review and analysis of your customer data you are able to determine the following information:

Average Value of Sales per Year per Customer: $$120$

Average Customer Retention Cost: $$75$

Customer Acquisition$-$oriented Marketing Expenses per Month: $$1,000$

Average Customer Retention Rate: $80\%$

You acquire an average of $25$ new customers a month.