Measurement & strategy · Common term
Customer lifetime value
What is customer lifetime value?
An estimate of customer value over a relationship using explicit assumptions.
Customer lifetime value: an illustrative example
Model retention and contribution margin rather than treating revenue as profit.
Sources and related reading
- Related MAC perspective: evidence, people, and accountability — related reading
This is a practical common term. Examples illustrate the concept; they are not verified client results. Working definitions and accountability lenses are not claims of a universal standard or original coinage.
Related measurement & strategy terms
- A/B testing
Comparing two versions by randomly assigning participants and measuring a predefined outcome.
- Accountable owner
The person responsible for carrying an agreed outcome through delivery.
- Attribution
Assigning credit for an outcome to observed touchpoints using a stated rule or model.
- Baseline
The starting reference against which change is assessed.