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Customer Lifetime Value

Definition

Customer lifetime value (CLV, or LTV for life-time value), is the predicted amount of revenue an average customer will generate for your business over the entire lifespan of your relationship with them. The longer a customer continues to purchase from your business, the greater their lifetime value becomes.

CLV tells you the state of your audience relationships, how much your customers like your products or services, what you’re doing right and areas you can improve. CLV helps you make important future business decisions about marketing, product development, sales, and customer support.

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