Customer Life Cycle (CLV) is an essential KPI in marketing and sales. It reflects the total value a customer represents to a company throughout their relationship, not just in an individual transaction. It includes all revenue generated by a customer from acquisition through retention and sometimes even eventual churn.

CLV helps companies determine how much to invest in acquiring a customer and how much effort to devote to customer retention. By maximizing CLV, companies can increase revenue while minimizing expenses.