Measures the total value a customer brings to the business over their entire relationship.

What it Measures ?

How much value one customer brings.

Relevant StakeHolders 

Marketing, Finance

In-depth Use Case / Real-world Example

CLV estimates the total revenue a customer will generate over their lifetime as a paying customer. For example, if a customer generates ₹1 lakh annually for 5 years, the CLV is ₹5 lakhs. This KPI helps businesses understand the long-term value of customer relationships, including service contracts, repeat purchases, and referrals. In manufacturing, where customers may purchase ongoing maintenance or support services, CLV is a key metric for evaluating the effectiveness of service offerings and customer retention efforts.