Recruiter's Glossary

Examples: Kaizen • Resource Allocation • ROI

Lifetime Value

Term from Management industry explained for recruiters

Lifetime Value (LTV) is a business measurement that shows how much money a company can expect to earn from one customer over the entire time they remain a customer. It helps companies understand which customers are most valuable and how much they should spend to attract and keep them. For example, a gym membership customer might be worth $2,400 over two years, while a coffee shop regular might spend $5,000 over five years. People also call this "Customer Lifetime Value" (CLV) or "Lifetime Customer Value" (LCV). It's a key number that helps businesses make smarter decisions about their marketing and customer service spending.

Examples in Resumes

Increased average Lifetime Value of customers by 45% through improved retention programs

Developed strategies that doubled Customer Lifetime Value within 18 months

Led team projects focused on increasing LTV through personalized customer experiences

Created reports tracking Lifetime Customer Value across different customer segments

Typical job title: "Customer Success Managers"

Also try searching for:

Marketing Manager Customer Success Manager Business Analyst CRM Manager Revenue Manager Customer Experience Manager Growth Manager Retention Specialist

Where to Find Customer Success Managers

Online Communities

Professional Resources

Learning Resources

Example Interview Questions

Senior Level Questions

Q: How would you develop a strategy to increase customer lifetime value across different customer segments?

Expected Answer: A strong answer should discuss analyzing customer data, identifying high-value segments, creating targeted retention programs, and measuring results. They should mention specific examples from past experience.

Q: How do you balance acquisition costs against lifetime value when planning marketing budgets?

Expected Answer: Should explain how to compare customer acquisition costs (CAC) with lifetime value to determine profitable marketing channels and appropriate spending levels for different customer types.

Mid Level Questions

Q: What metrics do you track alongside lifetime value and why?

Expected Answer: Should mention related metrics like churn rate, customer satisfaction scores, and repeat purchase rates, explaining how they connect to and influence lifetime value.

Q: How would you identify customers at risk of churning before they leave?

Expected Answer: Should discuss monitoring customer engagement signals, usage patterns, and satisfaction indicators to spot potential churn risks early.

Junior Level Questions

Q: How would you calculate a basic customer lifetime value?

Expected Answer: Should be able to explain the simple formula: average purchase value × number of transactions × average customer lifespan.

Q: What factors can influence a customer's lifetime value?

Expected Answer: Should identify basic factors like purchase frequency, average order value, customer service quality, and length of customer relationship.