# Customer lifetime value: what it is and how it works
> Customer lifetime value, or LTV, estimates the economic value a commercial relationship provides over its duration.
URL: https://www.zorraquino.com/en/dictionary/digital-marketing/ltv.html

# Customer lifetime value

Customer lifetime value, or LTV, estimates the economic value a commercial relationship provides over its duration

What it means, how it is used and where it comes up, with its related concepts.

[The whole glossary](https://www.zorraquino.com/en/dictionary)

## What it is and how it works

The definition can use revenue or margin, so it should be made explicit. For investment decisions it is worth considering cost to serve, retention and uncertainty. Comparing it with acquisition cost requires compatible bases and time horizons.

Also known as

LTV

Topics

[Marketing and sales](https://www.zorraquino.com/en/dictionary/category/marketing-y-ventas)

## Related concepts

- [Customer acquisition cost](https://www.zorraquino.com/en/dictionary/customer-acquisition-cost)
- [Ideal customer profile](https://www.zorraquino.com/en/dictionary/ideal-customer-profile)
- [Sales pipeline](https://www.zorraquino.com/en/dictionary/sales-pipeline)