What is lifetime value, and why is it important for a business?

Lifetime value (LTV) is the total money a customer is expected to spend on a business’s products or services during their relationship with the company. It is important for a business because it helps them understand the long-term value of their customers, and allows them to make informed decisions about how much money they should invest in acquiring and retaining customers. By increasing LTV, a business can generate more revenue from each customer and improve profitability.