Glossary

Customer Lifetime Value (CLV) is a term used in marketing to refer to the value of a customer throughout the whole duration of the relationship they have with a brand or company.

It is essentially a metric to determine how much a customer is worth so decisions about investing in those types of clients can be made with confidence. For example, CLV is used to determine how profitable a customer will be given the costs of acquiring them and help companies decide how much they should invest in those and potential clients with the same characteristics.

In the user experience domain, this is a very important concept as it focusses on long-term customer satisfaction and experience with a brand rather than short-term wins or hard selling. Short term wins and CLV don’t always go hand in hand.

More on Customer Lifetime Value (CLV) >
More about Foviance >

Back to glossary