The textbook definition
In marketing textbooks, Customer Lifetime Value (CLV) is defined as “the present value of the future cash flows attributed to the customer relationship”, and is calculated something like this:
Adjusted for Net Present Value.
However, this doesn’t tell the whole story. Social media is so commonplace that customers are no longer just buyers at the end of a funnel — they are publishers in their own right, with an audience of peers who listen to them.
Adding referral value
If a customer can influence the purchase decisions of others, that influence has value. Social Customer Lifetime Value (SCLV) accounts for it by adding Customer Referral Value (CRV) to the traditional figure:
Customer Lifetime Value plus Customer Referral Value.
CRV combines two ingredients: a customer’s Social Capital — the standing and reach they hold among their peers — and their likelihood to advocate for the brand, which can be assessed in the same spirit as a Net Promoter Score.
Why it matters
- Customers now act as publishers, shaping opinion among people who trust them.
- Advocacy likelihood and Social Capital together give a fuller picture of referral value.
- Social CRM practices help teams recognise and work with that influence.
Treating every customer as a potential publisher changes how a business measures relationships — not only what someone spends, but who they bring with them.
“SCLV = CLV + CRV” — the value of a customer, plus the value of the people they influence.