Calculating customer lifetime value (CLV) is a way for businesses to measure the total value of each customer’s purchase decisions throughout their relationship with the company. In other words, it’s a way to figure out how much each customer is worth to the business over their lifetime as opposed to looking at individual sales transactions and seeing only short-term gains. By understanding CLV, businesses can gain insight into which customers are more valuable and craft strategies to bring in more loyal buyers who provide long-term revenue.