Customer Lifetime Value (CLV) is a metric that estimates the total revenue a business can expect from a single customer over the entire duration of their relationship. CLV is calculated by considering the average purchase value, purchase frequency, and the length of the customer relationship. Understanding CLV helps businesses make informed decisions about marketing spend, customer acquisition costs, and retention strategies. A high CLV indicates that customers are valuable and loyal, while a lower CLV may signal the need for improved customer retention efforts. Maximizing CLV is crucial for long-term business profitability and growth.