CLV (Customer Lifetime Value)
01 Definition
CLV (Customer Lifetime Value) meaning: The value expected from a customer across the relationship.
Customer lifetime value estimates contribution or revenue from a customer over time using historical cohorts predictive models or simple averages. The precise formula varies by business.
Also called
LTV
Why it matters
How CLV (Customer Lifetime Value) fits the work
CLV helps set acquisition limits prioritize retention and compare customer segments.
In context
The subscription team compares CAC with customer lifetime value by acquisition source.
Practical note
Use contribution margin when possible and label assumptions about churn horizon and discounting.