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It’s important to know the value of every customer to the bottom line of your business throughout the lifetime of your business relationship with them.  How much profit can you expect to gain from every customer?

Once you know this number, you can think about how you can expand the relationship with the customer and increase the profit.

Customer lifetime value is about creating mutually beneficial long-term relationships between you and the client with the side benefit of bringing more profit to your business.

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