Dictionary term

Customer Lifetime Value (CLV)

An estimate of the revenue or profit a business expects to earn from a customer over the relationship.

An estimate of the revenue or profit a business expects to earn from a customer over the relationship.

Why Customer Lifetime Value (CLV) matters

Understanding this term helps teams align sales, operations, finance, and technology around how business customers evaluate, purchase, and receive products or services.

How It Applies to E-Commerce

Commerce purchase frequency, basket value, and retention data help estimate CLV.

How It Applies to ERP Systems

ERP order, margin, and cost records can support profit-based CLV models.

How It Applies to CRM Systems

CRM uses CLV estimates to prioritize account coverage and retention investments.