Customer Lifetime Value (CLV) is a metric that predicts the total value of a customer to a business over their lifetime as a customer. This metric takes into account the revenue generated by the customer, the costs associated with acquiring and retaining the customer, and the length of time that the customer is expected to remain a customer.
CLV is used by businesses to identify the most valuable customers and allocate resources accordingly. The goal of CLV is to maximize the value of a customer over the course of their relationship with the business and improve customer retention and loyalty.