Customer Lifetime Value

Definition ∞ Customer Lifetime Value represents the total revenue a business can reasonably expect from a single customer throughout their relationship with the company. This metric is a projection of the long-term profitability associated with an individual customer account. It assists businesses in making informed decisions about marketing, sales, product development, and customer support. Maximizing this value is a key objective for sustainable business growth.
Context ∞ In the digital asset and Web3 sectors, understanding customer lifetime value is becoming increasingly relevant for platforms and projects. As user acquisition costs rise, retaining participants and fostering long-term engagement with decentralized applications or token ecosystems is paramount. News articles may discuss strategies employed by crypto businesses to cultivate lasting user relationships and enhance this metric.