An estimate of the total economic value a customer contributes over the duration of the relationship.
Why Lifetime Value (LTV) 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 transaction and retention data estimate the economic value of a customer over time.
How It Applies to ERP Systems
ERP cost and margin data can improve LTV calculations beyond gross revenue.
How It Applies to CRM Systems
CRM uses LTV to prioritize retention, service levels, and account growth.