Lifetime Customer Value (LCV) is a business term used to measure the financial value of each customer to the company. It is calculated by taking the total sales revenue generated from the customer in their lifetime and subtracting any marketing and operational costs associated with acquiring and serving that customer. LCV helps businesses understand how much they can invest in acquiring and maintaining customers, as well as which customers are most valuable to their bottom line. LCV can be used to develop more effective marketing strategies, provide better customer service, and encourage loyalty and retention.