Customer Lifetime Value (CLV) estimates the total value a customer is expected to generate over the duration of their relationship with a business.
CLV is used to guide acquisition and retention strategies.
Examples in Action
- Evaluating acquisition channel quality
- Prioritising retention initiatives
- Segmenting high-value customers
- Informing pricing or loyalty strategies
Typical Outcomes / Results
- Better long-term growth decisions
- Improved acquisition efficiency
- Stronger focus on retention
- Clearer understanding of customer value
This definition reflects standard customer value measurement practices.