The concept became vital with subscription and SaaS businesses in the 2010s. Traditionally, businesses focused on acquiring new customers, often overlooking retention strategies. However, as subscription models gained popularity, companies recognized that retaining high-value customers was more profitable than constantly acquiring new ones. AI-powered CRMs began using predictive analytics to estimate lifetime value, enabling businesses to tailor engagement strategies accordingly. Today, high-lifetime value customer segmentation is a core practice across industries, from e-commerce to financial services, ensuring companies optimize their marketing and retention efforts for maximum profitability.