Trevant Academy Digital Marketing Agency Glossary

Plain language explainers to help you keep up with the evolving marketing landscape.

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Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) estimates the total revenue a business can expect from a single customer over the entire duration of their relationship. It helps brands understand long-term customer value and inform acquisition and retention strategies.

Calculation: CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan

Example: If a customer spends $50 per purchase, buys 4 times per year, and remains a customer for 5 years, the CLV is $1,000.

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