Lifetime Value of Customers (LTV) is an analytical metric used to measure the overall value of a customer throughout their entire relationship with your business. LTV reflects the total amount of revenue and profits attributable to a specific customer, both through direct purchases and through referral of friends, family, and colleagues. It’s easy to think about Lifetime Value in one-time transactional terms, but it’s more important to look at how our customers benefit us over time. Understanding this helps businesses reward loyal customers, plan for marketing campaigns, and anticipate any changes in short-term or long-term customer behavior.