Net Lifetime Value (NLV) is a customer profitability metric that calculates the total revenue a customer generates over their lifecycle, minus acquisition and retention costs. This metric helps businesses determine how much they should invest in customer acquisition, upselling, and retention efforts. CRM platforms track NLV by analyzing purchase history, renewal rates, and churn risk. A high NLV indicates that customers are generating significant long-term value, making retention-focused strategies more cost-effective than constant acquisition. Businesses use NLV insights to personalize marketing efforts, prioritize high-value customers, and optimize pricing models. Increasing NLV through loyalty programs and proactive customer support can significantly boost profitability.