Back to the glossary
Customer Lifetime Value (CLTV)
CUST-uh-murr LIFE-time VAL-yoo
noun
The total amount a customer spends on an e-commerce company’s products or services over the entire duration of their relationship. CLV can be calculated by multiplying the average value of a purchase by the number of transactions per year by the average customer relationship length in years.
Sign up for ShopNews
The monthly newsletter keeping thousands of e-commerce brands and innovators in the loop.Your brand will thank you. Your customers will love you.
