Customer lifetime value, CLV or LTV, is the value attributed to or expected from a customer over the relationship. Distinguish revenue CLV, based on expected purchases, from margin CLV, which deducts relevant costs from that revenue. CFI discusses both revenue-based lifetime value and a version applying a profit margin.[1] A CLV figure is hard to interpret without knowing that basis.
A store can report value realised so far separately from a forecast for the remaining relationship. State the horizon, treatment of returns and costs already included. Revenue alone is not an available acquisition budget. Avoid double counting as well: if acquisition costs have already been deducted from customer value, disclose that before comparing the figure with CAC again.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.