Customer Life-Time Value is the total revenue a business can expect from a single customer’s account throughout their business relationship. The more transactional a customer gets the more their expected customer lifespan.

CLV is also useful for making business decisions. For example, you can use customer lifetime value to identify and target the most valuable customer segments to the company.

It is one of the key ways of tracking a customer’s experience and satisfaction. This help business to know what marketing strategy works for them. It can also be used to weigh the effectiveness of a current marketing strategy.

With CLV, a business can develop ways of retaining existing customers and how to acquire new ones.