Customers who are loyal to the brand increase the lifetime value of the company. Loyal customers are more likely to buy from your company again, and they will also refer others to buy from your company. These customers are also less likely to switch over to a competitor's product. The CLV is an important metric that companies should take into consideration when developing their business strategy. The CLV is calculated by taking into account all of the revenue that a customer has contributed to a company during their lifetime, minus any costs associated with them (such as advertising).