Customer lifetime value

Customer lifetime value

In marketig, customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV) and a new concept of "customer life cycle management" is the present value of the future cash flows attributed to the customer relationship. Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales.


Reference: http://en.wikipedia.org/wiki/Customer_lifetime_value

My opinion: Marketing managers today are engaged with collecting more and more information about their customers then before because with the help of this information the can able to determine the customer lifetime value which helps marketing managers to arrive at the monetary value associated with long term relationship with any customer.