CLV
Business & Finance abbreviation · Marketing & Advertising
| Stands for | Customer lifetime value |
|---|---|
| Categories | Business & Finance |
CLV stands for Customer lifetime value, a marketing & advertising abbreviation.
Predicted net value of the future relationship with a customer, often modeled from purchase frequency, average order value, margin, retention and a discount rate. Retailers use it to segment customers and set acquisition and loyalty budgets.
Example: We send VIP offers only to the top decile by predicted CLV.
Usage notes
Historical CLV sums what a customer has already spent, while predictive CLV uses statistical models, such as "buy till you die" models, to forecast future purchases. Customer-centric strategy writers such as Peter Fader popularized CLV as a guide for allocating marketing effort. Also written CLTV.
Related abbreviations
More marketing & advertising abbreviations
- BOFU – Bottom of the funnel
- BTL – Below the line
- C2C – Consumer-to-consumer
- CAC – Customer acquisition cost
- CDP – Customer data platform
- CES – Customer effort score
- CPA – Cost per acquisition
- CPC – Cost per click
- CPCV – Cost per completed view
- CPE – Cost per engagement
- CPI – Cost per install
- CPL – Cost per lead