Definition
Customer Lifetime Value (CLV or LTV) is the projected total revenue a single customer generates over the entire duration of the business relationship.
Background & relevance for restaurant operators
In the restaurant industry, CLV is calculated from average order value × order frequency × expected customer lifespan. A regular with €25 per order, 2× monthly, over 3 years generates a CLV of €1,800. Loyalty programs and push notifications measurably increase CLV.