LTV, or Lifetime Value, is a metric that estimates the total revenue a business can expect from a customer throughout their entire relationship. It helps companies understand how much they can invest in acquiring new customers while maintaining profitability. By analyzing customer behavior and purchase patterns, businesses can make informed decisions about marketing strategies and resource allocation. Calculating LTV involves considering factors like average purchase value, purchase frequency, and customer lifespan. This information allows companies to identify their most valuable customers and tailor their services or products to enhance customer satisfaction and loyalty, ultimately driving growth and success.