Customer Lifetime Value (CLV) is a metric that estimates the total revenue a business can expect from a single customer throughout their relationship. It helps companies understand how much they should invest in acquiring and retaining customers. By analyzing purchasing patterns and behaviors, businesses can make informed decisions to enhance customer satisfaction and loyalty. Calculating CLV involves considering factors like average purchase value, purchase frequency, and customer lifespan. This information allows companies to identify their most valuable customers and tailor marketing strategies to maximize profitability. Understanding CLV is essential for effective business planning and resource allocation.