Resource Allocation: Knowing the value of a customer helps businesses allocate their resources more effectively. For example, you can determine how much to spend on marketing and sales efforts to acquire new customers. Customer Retention: By understanding CLTV, businesses can identify which customers are the most profitable and focus their efforts on retaining these high-value accounts. Product Development: Insights from CLTV can guide the development of new products or services that cater to the needs of high-value customers, thereby increasing overall profitability.