# CLV

CLV is how much a customer is worth to you over the whole customer relationship, not only on the first purchase.

Source: https://ibenta.no/en/glossary/clv
Publisher: Ibenta (https://ibenta.no)
Updated: 2026-09-27

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Most businesses earn little on the first purchase and more on the customer who comes back. CLV puts a number on that. Calculate with profit, not revenue, or the figure comes out too high.

## A worked example

A hairdresser makes NOK 300 in profit per visit. A typical customer comes six times a year and stays for three years. CLV is then NOK 300 times six visits times three years, which is NOK 5,400 in profit per customer.

## How CLV and CPA fit together

If you only look at the first visit, you can spend at most NOK 300 to win a customer. With CLV in hand, you can afford a higher [CPA](/en/glossary/cpa) per customer. If you pay NOK 1,000 for a new customer, you are still left with NOK 4,400 over three years. That assumes customers actually come back. Guess cautiously, and err on the low side.

It also makes keeping the customers you have pay off. A reminder by email or text message when it is time for the next appointment raises CLV without you having to buy a single new customer.

## Work out your own

Pull out 20 customers from a year or two back from your booking system, your [CRM](/en/glossary/crm) or your accounts. Count how many times each of them has bought, and multiply by the profit per purchase. The average is your approximate CLV per customer.