Average Lifetime Value (ALV) is a key metric used in business to measure the long-term value of a customer relationship. It helps determine what marketing tactics are worth investing in, and how much to pay for acquisition costs or discounts. ALV is a predictive metric that measures the average revenue generated by a customer over an extended period of time – usually over several years. The higher the ALV, the better it indicates that your current strategies are working, and that customers have been engaging with your product or service in a meaningful way.