Customer lifetime value - Definition and Overview

This is a long-term marketing principle which looks at the value to the company of a customer over the whole time that they relate with the company. This includes knowing that although a customer may temporarily use another company's products/services, they can return.

One important consequence of a company taking the long-term view to heart and into action is that the customer tends to have better service and hence tends to be more loyal.

See Customer focus, Marketing strategies