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Back to Glossary

Customer Lifetime Value (CLV)

A metric that estimates the total revenue a business can expect to earn from a single customer account throughout the entire duration of their relationship. CLV is crucial for understanding the long-term value of customers and helps businesses make informed decisions about customer acquisition, retention strategies, and resource allocation. The basic formula for CLV is:

CLV = Average Purchase Value × Purchase Frequency Rate × Customer Lifespan

A more advanced formula may also take into account the profit margin and discount rate to provide a more accurate financial measure.

Related Terms

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) quantifies predictable yearly revenue from subscriptions. It excludes one-time fees, helping businesses assess financial health, growth, and stability for strategic planning and benchmarking.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) measures the total expense of gaining a new customer, including marketing and sales costs. It helps assess acquisition efficiency and ROI by dividing costs by new customers.

Customer Churn (Churn Rate)

Churn rate measures the percentage of customers who leave a business over time. It's key for retention and growth, calculated as lost customers divided by starting customers, then multiplied by 100.

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the predictable revenue from subscriptions each month, including new sign-ups, renewals, and upsells, providing insight into a company's financial health and growth.
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Weekly release update: May Week 2
Updates from last couple of weeks! 👀 Salesforge 📬 Contacts Export Now Includes First & Last Names Exporting contacts just got more useful. All export files now include First Name and Last Name columns Easier sorting, personalization, and CRM syncing Smarter Product Cards with AI-Powered Evaluations Product card creation now comes with built-in guidance. Evaluate key sections like Pain, Cost of Inaction, and Solution AI gives instant feedback to help you write stronger messaging for better-performing email copy Simplified User Invites We’ve reduced friction and improved clarity in a key area. Admins now only enter the new user’s email and role. The user receives an email invite and sets up their own credentials. Anti-Spam Filtering in Validation Step We’ve added another layer of protection to your sequences. During email validation, we now detect and filter contacts associated with major anti-spam tools This helps protect your sender reputation and keeps your outreach clean New Integration: Salesforge x Sendspark Bring video into your cold outreach with our new Sendspark integration. Add personalized video messages to your sequences Humanize your outreach and improve reply rates New Integration: Salesforge x Make.com Salesforge now connects with thousands of apps via Make.com. Automate workflows between Salesforge and your tool stack—no code required Triggers include: email sent, opened, replied, bounced, unsubscribed, label changes, and more Agent Frank 🤖 Export Reports from Agent Detailed View Agent Frank reports are now downloadable. Export data directly from the Agent view Ideal for performance reviews, audits, and team sharing Localized Greetings Are Here Make your outreach more personal and relevant across languages. Frank automatically adjusts greetings based on the recipient’s default language (from LinkedIn) Replies adapt too, and a toggle allows users to enable or disable this feature New Logic Update: Spam Filtering Now Baked Into Agent Frank The same anti-spam filtering logic used in Salesforge is now integrated into Agent Frank. Cleaner contact lists Improved deliverability across all your campaigns Warmforge 🔥 Bulk Edits for Mailboxes Are Live Managing multiple mailboxes just got a whole lot easier. Apply changes to several mailboxes at once Save time and reduce manual work User Management in Warmforge Warmforge now supports multi-user workspaces. Admins can invite teammates directly Great for growing teams that need to scale warm-up efforts together Public API + Placement Tests API A major update for power users and developers. Public API: Programmatically manage mailboxes and automate warm-up workflows Placement Tests API: Run inbox placement tests via API, integrate results into dashboards, and catch issues before launch New free tools on salesforge.ai 🔨 Cold Email Expert GPT: Ask anything about cold outreach - strategy, ICPs, copywriting, deliverability - and get expert-level answers instantly. Roast My Cold Email Copy GPT: Use our ChatGPT-powered assistant to get brutally honest, high-impact feedback on your cold email copy. The Forge Sales GPT: Use our ChatGPT bot to create cold email sequences based on your ICP and value proposition. Cold Email Domain Generator: Generate secondary domain names for your cold email outreach to protect your email deliverability! Buyer Persona Generator: Generate your ICP & buyer persona template in minutes for more accurate outreach!