# Customer Lifetime Value (CLV)
Status: public
Confidence: medium (0.76) (verified)
Last verified: 2026-05-28
Generation: human_only

## TL;DR
Customer Lifetime Value estimates the economic value of a customer relationship over time. It helps connect acquisition cost, retention strategy, and customer-base valuation.

## Core Explanation
CLV analysis is most useful when it supports decisions about which customers to acquire, retain, or grow. Practical models may use transaction history, recency, frequency, monetary value, retention assumptions, and margin assumptions rather than a single universal formula.

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