Customer lifetime value

What is customer lifetime value?

Definition of customer lifetime value:  

Customer lifetime value (CLV) involves estimating the value of each customer’s future relationship with your business.

CLV is an important metric: it will often be more valuable for a business to have long-standing customer relationships than short-lived one-off purchasers.

Note that CLV is only the expected lifetime value of a customer - the metric can only predict revenues.

Related content: