Search

#ThetaThursday

There are many different names for customer lifetime value – #CLV, #LTV, #PAV, #RLV, #HV, etc. Which one is which? Over the past few weeks, #ThetaThursday dove a little deeper in these terms.

Sometimes when people talk about CLV they actually mean PAV. There's an important distinction

What is #RLV? Residual Lifetime Value shows how much value is remaining in a customer. Unlike CLV, it focuses exclusively on future profits & is a key metric for customer retention & development. Total RLV of customers represents the aggregate value of your existing customer base

Historical value is a purely backward-looking metric of customer value. Believe it or not, many people who say #CLV actually mean #HV. It is not generally useful on its own, except for what it implies for CLV.


Make sure you are following us on Twitter @ThetaCLV and Linkedin to keep up with our latest #ThetaThursday posts.