What is Customer Lifetime Value?

A definition of Customer Lifetime Value

“Customer Lifetime Value (CLV) is a metric that estimates the total revenue a business can earn from a customer over the entire duration of their relationship.”

Customer Lifetime Value in Business Glossary - What is a Customer Lifetime Value?

Business Glossary > What is Customer Lifetime Value?


Examples of Customer Lifetime Value in a Sentence:

Companies use customer lifetime value to strategize long-term growth.

Increasing the customer lifetime value is a priority for our marketing team.

We focus on enhancing customer experience to boost customer lifetime value.

Why is Customer Lifetime Value Important in Business?

Understanding Customer Lifetime Value is vital for businesses as it helps in making informed decisions on marketing spend, customer acquisition strategies, and overall customer relationship management. Increasing CLV can enhance profits and boost customer loyalty over time.

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Associated Terms

Here are some associated business terms and synonyms for “Customer Lifetime Value”:

  • CLV
  • Customer Equity
  • LTV

Amazon Customer Lifetime Value

Amazon meticulously tracks customer lifetime value across their diverse customer base. By understanding CLV, Amazon tailors its services, offers personalized recommendations, and ensures competitive pricing to maintain strong relationships and maximize customer value over time.

Final Notes on Customer Lifetime Value

When considering customer lifetime value, businesses should examine:

  • Customer acquisition costs
  • Retention strategies
  • Upselling and cross-selling opportunities

Evaluating these factors aids in strategic planning and resource allocation.


This has been a definition of Customer Lifetime Value meaning.

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