Customer Lifetime Value (CLV) is an important metric for businesses to understand and track. It provides insight into how profitable a particular customer is over their entire relationship with the company. By measuring this metric, businesses can identify customers who are more likely to generate higher returns in the future and better target marketing campaigns to maximize profits. CLV models help businesses gain a better understanding of the true value of each customer by factoring in factors such as repeat purchases, upsells, cross-sells, and marketing costs. This allows them to make smarter decisions on pricing, product offerings, and promotional strategies to ensure long-term success and profitability.