Customer lifetime value (CLV) is a metric used to measure the total worth of a customer to a business over the entire duration of their relationship. It takes into account the amount of money a customer spends on products or services, as well as their loyalty and potential for future purchases. CLV is a crucial tool for businesses to understand the long-term impact of their customer base and make strategic decisions to maximize profitability and customer satisfaction. It goes beyond simple transactional data and considers the value of a customer as an ongoing asset to the company. In short, customer lifetime value is a key indicator of a business’s success in building and maintaining strong, profitable relationships with its customers.