Average Customer Lifetime Value (ACLV) is a key metric to measure the long-term health of your business. ACLV represents the total amount of money a single customer is expected to provide to your company over their lifetime. It’s an estimate that helps businesses make decisions about marketing investments, product pricing, and customer service allocation. For example, if a customer is likely to generate $500 in profits for you over their lifetime, then it might be worth investing extra resources in providing them with a superior customer experience. The broader goal of calculating ACLV is to understand which customers are the most valuable and develop strategies to maximize their loyalty to your brand.