Customer Lifetime Value (LTV or CLV) predicts the total revenue a customer will generate throughout their entire relationship with your business. It's one of the most important metrics for understanding the long-term value of your customer base. Why LTV matters: - Determines how much you can spend to acquire customers (CAC) - Identifies your most valuable customer segments - Guides product and service investment decisions - Helps optimize marketing spend Factors that increase LTV: - Reducing churn rate - Increasing average order value - Expanding share of wallet through upsells - Improving customer satisfaction