Life Time Value (LTV) calculation is the process of measuring the total revenue that a customer will generate over their lifetime with your business. It’s an incredibly useful metric for understanding how much you should be investing in marketing and sales efforts, as well as customer service, to maximize the return on your investment. This metric enables organizations to develop more intelligent pricing and promotional strategies, and make data-driven decisions around product development and customer engagement. LTV provides a way to measure and optimize the long-term value of your customers, which is paramount to ensuring sustained profitability and growth.