> For the complete documentation index, see [llms.txt](https://www.designreference.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.designreference.xyz/leadership/strategy/market-analysis/customer-lifetime-value-cltv.md).

# Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is the estimated total revenue a customer will generate for a business over their entire relationship. It takes into account factors like purchase frequency, average order value, and customer retention rate.&#x20;

CLTV is a valuable metric for businesses as it helps them understand the long-term profitability of their customers and make informed decisions about customer acquisition and retention strategies.

#### Further Reading

{% embed url="<https://uxplanet.org/customer-acquisition-cost-cac-and-customer-lifetime-value-cltv-essentials-53e33a11beaa>" %}


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