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E-commerce vocabulary · Conversion and Analytics

Customer lifetime value

Meaning in e-commerce, with examples

nounCommon term

In e-commerce, customer lifetime value means: An estimate of the total revenue, or profit, a business can expect from one customer over the whole time they keep buying from it.

In Turkish: müşteri yaşam boyu değeri, müşteri ömür boyu değeri

How it is used

Used in growth, marketing and finance discussions. Shortened to CLV or LTV. Teams compare customer lifetime value with the cost of winning a customer (CAC) to decide how much they can spend on marketing.

Example sentences

  1. Subscribers have a customer lifetime value three times higher than one-time buyers.

  2. We can spend more on ads because our customer lifetime value is high.

Common collocations

  • customer lifetime value
  • increase CLV
  • LTV to CAC ratio
  • lifetime value
  • repeat customerA customer who buys from the same store more than once; the share of such customers is a key sign of loyalty and long-term growth.
  • average order valueThe average amount a customer spends in one order, found by dividing total revenue by the number of orders in the same period.
  • conversion rateThe percentage of visitors or sessions that end with a purchase; for example, 2 orders from 100 visits is a 2% conversion rate.
  • direct-to-consumerDescribes a brand that makes its own products and sells them straight to customers, mainly through its own online store, without wholesalers or retail chains.

This word in other fields

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

More terms: Conversion and Analytics

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