What is Customer life time value?

Customer life time value is a deep marketing concept. Marketing is all about creating value for the customers. Life time value is only applicable for those products which are not disposable. The concept can also be linked with those products whose life is long (Over 10 years).

Example: Original Rado Wrist watch.

Rado watch is a status symbol. The value of luxury products to customers is very high. Suppose you are a child, you grand father purchased a original Rado watch 40 years ago. When he gets old he handed over the watch to your father. your father used the watched for 10 years and handed over it to you.

First the product is valuable for your grandfather, then your father realized its value. Now you will be the one who will use the Original Rado watch and you know its value.

The value of Rado watch will not end, until the product will get disposed.