Commerce / CLV

Customer Lifetime Value

Plain-language definitionAn estimate of the value a customer contributes across the full relationship. It helps balance acquisition cost against retention, margin, and repeat behavior.
Why it matters

Use the term to make a better decision.

In practice, customer lifetime value matters when a team needs to connect a technical or creative choice to a visible change in clarity, performance, discovery, or conversion. The useful question is not whether the term sounds sophisticated. It is what decision it helps the team make.