What is Lifetime value?

The Lifetime value, also known as Customer lifetime value (CLV), is the amount of money that customer spend with a certain company in the time of the money lifetime.

It is a metric that shows how much company spends on acquiring new clients through marketing campaigns, advertising, and promotional materials. So it is important for the company to calculate it. Simplistically, you have to deduct all expenses for a customer from a total number of actual revenues.