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Customer Lifetime Value
The total profit expected from a customer over the whole relationship.
- Area
- Sales
- Abbreviation
- CLV
- Also known as
- LTV, lifetime value
- In this area
- 14 terms of 259
Customer lifetime value estimates the cumulative margin a customer will generate before they stop buying, combining order value, purchase frequency, gross margin and expected retention.
It sets the ceiling on what you can sensibly spend to win and keep a customer, and it usually reveals that a small group of accounts deserves far more attention than they receive.
How it is calculated
CLV ≈ (AOV × Orders per year × Gross margin %) ÷ Churn rate
A simple recurring-margin approximation; discount it for long horizons.
Customer Lifetime Value is not just a definition here
Sales runs on this vocabulary every day in AWRA OpsHub — 14 of our 259 glossary terms describe things the platform actually does.