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Digital Marketing & SEO vocabulary · Analytics and Attribution

Customer lifetime value

Meaning in digital marketing & SEO, with examples

nounAdvanced term

In digital marketing & SEO, customer lifetime value means: An estimate of the total revenue or profit that a business can expect from one customer over the whole relationship.

In Turkish: müşteri yaşam boyu değeri, CLV, LTV

How it is used

Usually shortened to CLV, CLTV or LTV. It is compared with customer acquisition cost (CAC) to see how much a business can spend to win a customer. Common in subscriptions, e-commerce and apps.

Example sentences

  1. Our customer lifetime value is about 2,400 lira, so a CPA of 300 is acceptable.

  2. Customers from the referral program have a higher lifetime value than those from paid social.

Common collocations

  • increase customer lifetime value
  • LTV to CAC ratio
  • predicted lifetime value
  • high-value customers
  • CPAShort for cost per acquisition (or cost per action): the average amount spent on advertising to get one customer, lead or other conversion.
  • ROIShort for return on investment: how much profit an activity brings compared with what it cost, usually shown as a percentage.
  • segmentationDividing an audience or email list into smaller groups with shared traits, such as location, interests or purchase history, so that messages are more relevant.
  • ROASShort for return on ad spend: the revenue earned for each unit of money spent on advertising, shown as a ratio like 4:1 or a percentage like 400%.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Analytics and Attribution

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