Customer Lifetime Value (CLV) Measure
A Customer Lifetime Value (CLV) Measure is an LTV measure for organizational customers.
- Example(s):
- Counter-Example(s):
- See: Device LTV.
References
2020
- Qualtrics, 2020). "What is customer lifetime value (CLV) and how do you measure it?."
- QUOTE: ... Customer lifetime value (CLV) is one of the key stats to track as part of a customer experience program. CLV is a measurement of how valuable a customer is to your company, not just on a purchase-by-purchase basis but across the whole relationship.
Customer lifetime value is the total worth to a business of a customer over the whole period of their relationship. It’s an important metric as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a great way to drive growth.
Knowing the CLV helps businesses develop strategies to acquire new customers and retain existing ones while maintaining profit margins.
CLV is distinct from the Net Promoter Score (NPS) that measures customer loyalty, and CSAT that measures customer satisfaction because it is tangibly linked to revenue rather than a somewhat intangible promise of loyalty and satisfaction.
- QUOTE: ... Customer lifetime value (CLV) is one of the key stats to track as part of a customer experience program. CLV is a measurement of how valuable a customer is to your company, not just on a purchase-by-purchase basis but across the whole relationship.