Definition of the term “Customer Lifetime Value (CLTV)” from the Customer Service Wiki’s Dictionary

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Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is a metric defining the individual worth of a repeat client over the period of his/hers relationship with a business.

Customer Lifetime Value helps businesses decide the right funds allocation for marketing and sales activities.

In addition, maintaining a high CLTV increases profitability over time, as keeping existing clients is significantly less expensive than gaining new clients.