Estimates the total revenue a company expects from a customer over the entire business relationship.

What it Measures ?

How much one customer earns us over time.

Relevant StakeHolders 

Sales Leadership, Marketing Heads

In-depth Use Case / Real-world Example

A manufacturer of water purifiers sells to retail chains. If one retail customer purchases products worth ₹10 lakhs per year and typically stays for 5 years, the CLV is ₹50 lakhs. This KPI helps justify investments in customer service and retention by showing the long-term value of relationships.