LTV, or Lifetime Value, refers to the total amount of revenue a customer is expected to generate for a business over the course of their relationship. This metric takes into account not only the initial purchase or transaction, but also the potential for repeat purchases, referrals, and other forms of customer engagement. Essentially, LTV measures the long-term profitability of a customer and is a crucial factor in determining the success and sustainability of a business. By understanding and optimizing LTV, companies can make informed decisions about customer acquisition, retention, and overall growth strategies.