Customer Lifetime Value is the estimated total financial contribution of a customer throughout the relationship with the business, commonly abbreviated as CLV or LTV.

What Does Customer Lifetime Value Mean?

The estimated total financial contribution of a customer throughout the relationship with the business, commonly abbreviated as CLV or LTV.

Why Is Customer Lifetime Value Important When Selling an Online Business?

This term can affect how buyers evaluate risk, value, transferability, payment structure, or the practical completion of an online business acquisition. Founders should understand it before entering negotiations or signing transaction documents.

Related Terms

• Customer Acquisition Cost
• Churn
• Customer Retention
• Recurring Revenue
• Gross Margin

Next step: Explore the related glossary terms above or request a confidential online business valuation from Company-Seller.