Customer Lifetime Value or CLV is commonly used in two areas in business – customer acquisition and customer relationship management. Its goal is to aid in understanding how much it will cost you to acquire valuable customers and retain them, so you’ll know if you’re making positive or negative revenue per client. Through measuring CLV, a business can: -Identify and control how much to spend on acquiring or retaining a customer. -Calculate the cost per channel used in acquiring customers. -Maximize the lifetime value of a customer. -Identify which promotion to offer which client or customer segment to make the most profit. -Help a business develop the best strategies to acquire and retain valuable customers.