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Customer Lifetime Value (CLV / LTV)

Customer Lifetime Value (CLV / LTV)

Customer Lifetime Value (CLV / LTV)

Customer lifetime value (CLV or LTV) is the estimated long-term value of a customer to the business.

Category

Metrics

Also known as

CLV; LTV; lifetime value

A CDP and AI models can help optimize toward value rather than clicks: spend more to acquire and retain high-value customers, less on low-value ones.

In practice

Optimizing to CLV changes decisions from short-term to long-term. Make sure the model is grounded in real transactional data, not an aspirational assumption or blended average.

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