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Analytics Tool
Customer Lifetime Value Calculator
Estimate how much a customer is worth over the duration of their relationship with your business.
CLV Calculator
Enter your customer data to calculate lifetime value
CLV Projection Over Time
Visual representation of customer value over years
CLV Results
Based on your inputs
Customer Acquisition Cost
$50
Gross Customer Lifetime Value
$3,600
Net Customer Lifetime Value
$3,550
CLV:CAC Ratio
71.00:1
Great job! Your CLV:CAC ratio is healthy, indicating a good return on customer acquisition.
Understanding Customer Lifetime Value
Customer Lifetime Value (CLV) is a prediction of the net profit attributed to the entire future relationship with a customer. It helps businesses make decisions about how much to invest in acquiring new customers and retaining existing ones.
How to Interpret Your CLV
- CLV:CAC Ratio: This ratio compares your Customer Lifetime Value to your Customer Acquisition Cost. A healthy business typically aims for a ratio of 3:1 or higher.
- Simple CLV: A basic calculation that multiplies average purchase value by purchase frequency and customer lifespan.
- Traditional CLV: Incorporates gross margin and discount rate to account for the time value of money.
- CLV with Retention: The most sophisticated model that factors in customer retention rates.
Tips to Improve Your CLV
- Increase purchase frequency through loyalty programs and targeted marketing
- Increase average purchase value through upselling and cross-selling
- Improve customer retention through excellent customer service and engagement
- Reduce acquisition costs through more efficient marketing channels
- Increase gross margins by optimizing pricing and reducing costs
Need Help Improving Your Customer Lifetime Value?
If you're looking to improve your CLV, I offer professional marketing strategy and customer retention services. Contact me for a free consultation to discuss how we can maximize your customer value.