Average Customer Value (ACV) is a key metric used by businesses to measure the value each customer brings over time. It captures how profitable a typical customer is for a business, taking into account all of their purchases, returns, referrals, and more. ACV is typically calculated by dividing the total revenue from customers over a given period of time by the number of active customers during that same period. By understanding this key figure, businesses can create strategies to attract more customers who will bring the most value in the long run.