Lifetime value: Long-term customer value

(Customer) Lifetime Value, LTV, (or CLV) is an essential metric that quantifies the total value a customer generates over the entire duration of their relationship with a company. This metric enables startups to evaluate the profitability of customer relationships and make strategic decisions regarding marketing, sales and customer service to maximise customer loyalty. By increasing CLV, companies can secure long-term profitability, ensure efficient resource allocation and promote sustainable business growth.