What is the role of customer lifetime value in revenue optimization?

Customer Lifetime Value (CLV) helps your brand understand how much revenue a single customer is expected to generate over time. This guides marketing spend, retention strategies, and product development. Optimizing for CLV encourages brands to invest in long-term relationships rather than one-time sales. A higher CLV means you can afford to spend more on acquisition, offer better service, and create personalized experiences. It also helps prioritize customer segments that deliver more value and reduce waste across campaigns.