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Email Marketing Glossary.

Clear, no-fluff definitions of every email marketing term that matters—from open rates to double opt-in. 

 

Customer Lifetime Value (CLV)

Customer lifetime value (CLV) is the total revenue a business can expect from a single customer over the course of their relationship. It guides how much you can invest to acquire and retain customers.

Also known as: CLV, LTV, lifetime value, customer lifetime value

CLV reframes marketing from single sales to long-term relationships. Knowing what a customer is worth over time tells you how much you can spend to win and keep them — and where email marketing pays off most.

How is CLV calculated?

A common formula: average order value × purchase frequency × average customer lifespan. More advanced models factor in margins and retention rates.

Why does CLV matter?

It sets a rational ceiling on acquisition spend and highlights the value of retention. Because email is cheap and drives repeat purchases, it's one of the biggest levers on CLV.

How do you increase CLV?

Improve retention with post-purchase and loyalty flows, personalize to drive repeat orders, encourage higher order values, and re-engage lapsing customers before they churn.

Related terms

Email List Lead Magnet List Segmentation Subscriber Opt-In Form Double Opt-In

Related reading from Drip

Customer Lifetime Value (CLV): Formula + 8 Ways to Increase It The 10 Best Customer Retention Strategies

Frequently asked questions

What is customer lifetime value (CLV)?
Customer lifetime value is the total revenue a business can expect from a single customer over the entire relationship. It guides how much you can afford to spend acquiring and retaining customers.
How is CLV calculated?
A common formula is average order value × purchase frequency × average customer lifespan. More advanced models also factor in profit margins and retention rates for greater accuracy.
Why does customer lifetime value matter?
CLV sets a rational ceiling on acquisition spend and highlights the value of retention. Because email is inexpensive and drives repeat purchases, it's one of the strongest levers for increasing CLV.
How can I increase customer lifetime value?
Improve retention with post-purchase and loyalty flows, personalize to encourage repeat orders, increase average order value through cross-sells and upsells, and re-engage lapsing customers before they churn.
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