| Definition: | Lifetime Value of the Customer determines the value of a customer to a firm, over the lifecycle of that customer. This removes the focus on individual transactions with customers and has become increasingly used with the developments of technology and market research, and thus the ability to focus on narrower target markets, even to the individual consumer in some cases. Lifetime Value is an important measure used for relationship marketing programs. Lifetime Value of Customers was a popular metric for internet firms as they built their customer bases.
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