CLV

Definitions

1. Customer lifetime value, an estimate of the total value a customer generates over the duration of the relationship, often net of churn and margin assumptions. CLV is frequently paired with CAC in startup economics discussions.

   In plain English: How much value a customer is expected to generate over the full relationship.

   Example: "The model only works if CLV remains high enough to justify acquisition spend."

Related Terms

• ARR
• LTV / CAC
• Contribution Margin
• Customer Acquisition Cost
• Customer Lifetime Value
• Dollar Retention
• Lifetime Revenue
• LTV