Customer Lifetime Value (LTV) is a metric used in the business world to measure the total economic value of a customer over their lifetime with a given organization. LTV calculations typically factor in customer acquisition costs, customer retention costs, and the customer’s projected revenue contribution over time. This information enables businesses to determine how much they can spend on marketing strategies such as discounts and rewards, while still creating a profitable customer base. By measuring LTV, businesses can track customer interactions and performance more effectively, allowing them to make more informed decisions about their strategy moving forward. By understanding your Customer LTV, you can create better relationships with customers and increase profits.