CRM glossary
What is Customer lifetime value?
The total revenue (or margin) expected from a customer over the whole relationship, often abbreviated LTV or CLV.
Definition
Customer lifetime value: The total revenue (or margin) expected from a customer over the whole relationship, often abbreviated LTV or CLV.
Example
A customer paying $500 a month for three years has a lifetime value of roughly $18,000 in revenue.
Why it matters
LTV sets how much you can afford to spend acquiring and keeping customers.
Customer lifetime value in MagicWand
Profitability reporting shows which customers actually make money.