As plant develops, many industries′ automatic level is very high leading to the increasing of indirect cost. Traditional costing methods, which use single standard of distributing indirect cost, cannot calculate customer cost accurately and satisfy managers any more. This paper is aimed on solving the aforesaid problem. In this paper we propose the thought of evaluating customer cost by using activity based costing(ABC) and the traditional model of customer lifetime value(CLV) to improve the CLV model, then analyze the difference of using both models through an empirical study. As a result, ABC can account customer cost more accurately so that the CLV can help managers evaluate customer more effectively. As the plant develops, many industries’ automatic level is very high leading to the increasing of indirect costs. Traditional costing methods, which use single standard of distributing indirect cost, can not calculate customer cost accurately and satisfy managers any more. the aforesaid question in. In this paper we propose the thought of evaluating customer costs by using activity based costing (ABC) and the traditional model of customer lifetime value (CLV) to improve the CLV model, then analyze the difference of using both models through an empirical study. As a result, ABC can account customer cost more accurately so that the CLV can help managers evaluate customer more effectively.