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The Daily Carnage

january 8, 2026

The Meaning of Lifetime Value

CLV explained.

Be in The Know

🎬 Warner Bros rejects revised Paramount bid, sticks with Netflix.

🚗 Uber Advertising announced an interactive, destination-specific ad format.

😡 OpenAI’s rumored acquisition plans for Pinterest spark fury.

🎧 Spotify is slashing monetization requirements for video podcasters.

🤖 Study: 37% of consumers start searches with AI instead of Google.

🔮 What ads in LLMs could look like by 2027.

🍬 How Hi-Chew is targeting Gen Z with IRL activations.

🧠 Judges, farmers, and medical patients are pushing the limits of AI.

A Simple Guide to CLV

Customer lifetime value (CLV) tells you how much revenue you can expect from a customer over the entire time they do business with you.

Since acquiring new customers is expensive, it helps you understand whether that investment actually pays off, especially when compared to customer acquisition cost. Retaining customers with high CLV is usually far more profitable than constantly chasing new ones.

Here’s what you need to calculate CLV:

  • Average purchase value (how much customers spend per order)
  • Average purchase frequency (how often they buy)
  • Average customer lifespan (how long they stay with your brand)
  • Average gross margin (how much profit you keep per sale)

And here’s the basic CLV formula:

CLV = Average purchase value × Purchase frequency × Gross margin × Customer lifespan

Or, simplified:

CLV = Customer value × Customer lifespan

You can calculate CLV at different levels:

  • Company-level CLV: the value of your average customer
  • Segment-level CLV: the value of specific customer groups
  • Individual-level CLV: the value of a single customer (useful for VIP or churn-risk situations)

So, why does CLV matter?

  • Helps you focus marketing spend on higher-value customers
  • Improves retention, upsell, and cross-sell strategies
  • Makes forecasting and growth planning more reliable

CLV isn’t predictive, but when tracked consistently, it can help you better understand customer relationships and plan for long-term growth.

Head to Triple Whale for an in-depth guide.

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Ads From the Past

Ads from the Past

Delta Packing Co., 1952

Delta Packing Co., 1952

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