CLV is the growth metric that marketing can’t fake

In recent years, companies have turned to marketing as a shortcut to growth, pouring millions into campaigns, cultural plays, and acquisition tactics. 

But this focus often comes at the expense of what truly drives loyalty: better products and services. Consumers see the gap between glossy promises and lived experience — and their patience is wearing thin.

The customer satisfaction crisis

Customer satisfaction is at an all-time low. Across industries, American consumers are frustrated, feeling they get less value for more money.

• Forrester’s CX Index 2025 shows U.S. consumer perceptions of customer experience quality have dropped for a fourth consecutive year.
• The American Customer Satisfaction Index (ACSI) also reports three consecutive quarters of decline, sliding back to levels not seen in over a decade. 

From shrinkflation — smaller packages at the same price — to skimpflation — reduced product quality and service — customers face longer waits, lower quality and less reliability.

Dig deeper: Are your CX metrics hurting your customer experience?

When marketing tries to fill the gap

Look at the Las Vegas Strip. Once synonymous with an unbeatable value proposition — lavish entertainment, generous comps and a sense of indulgent escape — Vegas has lost some of its shine. 

Tourism has fallen significantly, and many analysts attribute the decline to shifting tastes and the Strip’s degraded value. Higher prices, resort fees and reduced perks have diminished the experience, leaving visitors questioning whether the trip is still worth it. 

The cultural relevance trap

Vegas is hardly alone in this. Across sectors, the equation between price and experience has tilted unfavorably and customers are voting with their wallets.

Rather than responding to these warning signs by improving products or reinvesting in customer service, many companies double down on marketing. The bet is that marketing magic can fill the gap left by declining value.

In some cases, brands chase cultural relevance to attract new segments. They launch campaigns to resonate with specific communities or lean into political and social causes. While often well-intentioned, these efforts can produce unintended consequences.

A message that appeals to one group may alienate another, leaving companies caught in a cultural tug-of-war. Instead of broadening brand affinity, they risk narrowing it — and amplifying the pressures marketing leaders are under.

Dig deeper: Reclaiming relevance in an AI-overloaded, buyer-led market

Why CLV is the right lens

This creates immense pressure on marketing leaders. CMOs are tasked with delivering more leads faster and at a lower cost.

However, marketing cannot sustain growth if the underlying product or service doesn’t live up to the promise. Customers lured in by brilliant campaigns will eventually experience the product itself — and if it falls short, the leads will dry up.

There is no hiding in a world of review sites, social media and peer recommendations. The truth about the customer experience always comes out.

What’s the alternative? One promising path lies in shifting focus from short-term acquisition metrics to customer lifetime value (CLV).

Unlike impressions, clicks or quarterly revenue, CLV accounts for the long-term relationship between a company and its customers. Properly applied, it forces companies to consider not just how to attract customers but also how to keep them.

It also highlights the cost of eroding trust and cutting corners.

The misuse of CLV

Like any metric, CLV can be poorly applied. Too often, companies use it as a convenient way to identify which customers are safe bets — the ones least likely to switch, even if service declines.

The danger is that firms then prioritize tactics that raise barriers to exit, from lock-in contracts to loyalty programs designed more to trap than to delight. This approach misuses CLV as a shield against churn rather than a tool for understanding customer value creation.

Dig deeper: Time to First Value: The CX metric you can’t afford to ignore

What CLV done right looks like

Done right, CLV is not about handcuffing customers — it’s about earning their loyalty through better experiences. 

A proper CLV mindset requires companies to view each customer as an investment. That investment must be nurtured through consistent quality, responsive service and innovations that enhance the experience over time. It reframes customer satisfaction as not just a nice-to-have, but as a driver of financial performance. 

When properly calculated, CLV reveals how much future revenue is at risk if product quality slips or service disappoints. Conversely, it quantifies the upside of delighting customers, demonstrating the return on reinvesting in them.

From marketing magic to authentic value creation

The implications are clear: sustainable growth comes from authentic value creation, not marketing gimmicks.

Marketing certainly plays a role — storytelling, awareness and engagement matter — but it cannot compensate for weak products or poor service.

The stronger the product and the better the experience, the more effective marketing becomes. Genuinely satisfied customers become brand advocates, reducing acquisition costs and multiplying the impact of every campaign.

The path forward

The cracks in today’s model are already visible. Declining customer satisfaction scores, shrinking tourism markets and growing consumer frustration are signals that companies should heed.

Superficial fixes no longer fool customers. They want brands to deliver on their promises, not just dress them up.

The companies that recognize this shift — that reinvest in the fundamentals of their value proposition — will be the ones that thrive.

Dig deeper: How customer analytics closes the gaps in performance measurement

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