Marketing
What is Customer lifetime value?
Customer lifetime value (CLV) is the total profit a business expects to earn from a single customer over the whole relationship. It helps companies decide how much they can spend to win and keep customers.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains customer lifetime value.
Key things to understand
- 1CLV estimates total profit from a customer over time.
- 2It accounts for repeat purchases, not just the first sale.
- 3It guides how much to spend acquiring and retaining customers.
- 4Raising retention and order value increases CLV.
Frequently asked questions
- What is customer lifetime value?
- The total profit a business expects from one customer across their entire relationship.
- Why does customer lifetime value matter?
- It shows how much you can afford to spend to acquire and retain customers profitably.
- How do you increase customer lifetime value?
- Improve retention, encourage repeat purchases, raise average order value, and deepen loyalty.