CLV is about how much money a customer will likely spend with your business over time. It helps you know how valuable each customer is. To find CLV, multiply how much they usually buy by how often they buy and how long they stay a customer.
Knowing CLV helps businesses decide how much to spend on getting and keeping customers. If it costs less to get a customer than they'll spend over time, it's a good deal. In business sales, CLV can be high because companies often buy for a long time.
CLV can guide many choices, like where to spend marketing money or what products to make. It's a guess about the future, so it's good to update it as you learn more about your customers.
