Final answer:
Companies investigate a person's purchasing behaviors to predict future purchases by analyzing patterns and behaviors of customers.
Step-by-step explanation:
In order to figure out CLV, companies investigate a person's purchasing behaviors to predict future purchases.
Customer Lifetime Value (CLV) is a metric used by businesses to measure the value that a customer brings to the company over their entire relationship. To determine CLV, companies analyze the patterns and behaviors of customers, such as their purchase history, frequency of purchases, and average order value.
By studying a person's past purchasing behaviors, businesses can gain insights into their preferences, interests, and buying habits. These insights help companies predict the likelihood of future purchases and tailor their marketing strategies to increase customer loyalty and maximize sales.