Customer Lifetime Value

Customer lifetime value (Customer Lifetime Value, CLTV) is considered the monetary value that a customer will bring to a company during its relationship and communication with that company. If a company identifies the benefits that its customers can provide in the future, it can streamline its customer relationships and take a more value-added approach. A company that has calculated unit costs for acquiring new customers can compare customer lifetime value calculations with marketing activities aimed at existing customer bases and efforts to find new customers.