Strategic Decision-Making: Understanding LTV helps businesses allocate resources more effectively, ensuring that they invest in the most profitable customer segments. Cost Management: By knowing the LTV, companies can determine how much they should spend on Customer Acquisition Cost (CAC) without compromising profitability. Revenue Prediction: LTV provides insights into future revenue streams, aiding in more accurate financial forecasting. Customer Retention: High LTV often indicates strong customer loyalty and satisfaction, emphasizing the importance of retention strategies.