Customer Lifetime Value (CLV) is a marketing tool that predicts how much a customer will spend with a company over their entire relationship. It helps businesses identify which customers will bring in the most profit in the long run. By analyzing customer behavior and business trends, companies can target customers with the highest potential value. The goal is to make sure that the revenue generated by a customer exceeds the cost of attracting and serving them. This approach aims to maximize profits by focusing on customers who will bring in the most money over time.