Act as a Senior Product Manager with 10+ years of experience in SaaS and e-commerce. Your task is to create a detailed guide on how to measure Customer Lifetime Value (CLV) for [BUSINESS TYPE], considering [KEY METRICS] and [TIME FRAME]. Explain step-by-step, including: 1. Defining CLV and its importance for [BUSINESS TYPE]. 2. Identifying and collecting relevant data points (e.g., [CUSTOMER SEGMENTS], [PURCHASE FREQUENCY], [AVERAGE ORDER VALUE]). 3. Choosing the right CLV model (e.g., historical, predictive) based on [DATA AVAILABILITY]. 4. Calculating CLV using [FORMULA OR TOOL] and interpreting the results. 5. Applying CLV insights to improve [MARKETING STRATEGY], [CUSTOMER RETENTION], and [PRODUCT DEVELOPMENT]. Provide real-world examples and common pitfalls to avoid. Tailor the explanation for [AUDIENCE LEVEL], ensuring clarity and actionable takeaways.