Analytics · Glossary

What is Customer Lifetime Value (CLV)?

Definition

Customer lifetime value is the total revenue (or profit) you expect from a customer over the whole relationship.

CLV explained

Knowing CLV tells you how much you can afford to spend acquiring a customer and highlights the value of retention, repeat purchases and referrals.

Example

A client paying ₹10,000/month for 18 months has a CLV of ₹1,80,000.

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01What does CLV stand for?

CLV stands for Customer Lifetime Value. Customer lifetime value is the total revenue (or profit) you expect from a customer over the whole relationship.

02What is CLV in digital marketing?

Customer lifetime value is the total revenue (or profit) you expect from a customer over the whole relationship.

03Why is CLV important?

Knowing CLV tells you how much you can afford to spend acquiring a customer and highlights the value of retention, repeat purchases and referrals.

04Can iSmartsLab help with CLV?

Yes. Our Digital Marketing team works on CLV every day for businesses across Odisha and India. Book a free consultation and we will review your current setup and share a clear plan.

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