lifetime-value

Vocabulary Word

Definition

'Lifetime Value' commonly known as 'Customer Lifetime Value' or 'CLTV', is a prediction of the total revenue a business can expect from a single customer account. It calculates the monetary value of a customer relationship.

Examples in Different Contexts

In the music industry, 'lifetime-value' can predict revenue from fans. A record label executive might assert, 'By offering exclusive content, we've seen an uptick in our artist's LTV.'

Practice Scenarios

Business

Scenario:

Our calculations show a consistent increase in the average spend per customer. However, are we doing enough to further enhance customer loyalty?

Response:

We can create a loyalty program to increase our customers' lifetime value and cement their relationship with our brand.

E-commerce

Scenario:

Our sales figures are impressive. However, I wonder if there's a way for us to retain customers for a longer period?

Response:

By curating personalized shopping experiences, we could potentially enhance the lifetime value of our customers.