Customer Lifetime Value (CLV)

The total value a customer is expected to generate for a business over the whole relationship.

Loyalty and repeat purchases raise it. Comparing it to acquisition cost is what justifies spending on relationships.

Often confused with

Customer Acquisition Cost (CAC): Lifetime value is money coming in over time; acquisition cost is money spent once to win the customer.

Taught in

2.1 Marketing to Customers

See also

2.1.C.3