Customer Lifetime Value Calculator

Unlock the Secret to Lifetime Customer Value: How to Calculate the Worth of Your Customer Base

Calculating the Customer Lifetime Value (CLTV) is a crucial metric for any business to measure each customer’s value over their lifetime. To calculate the CLTV, you will need to multiply the Customer Value by the Average Customer Lifespan.

The Customer Value represents how much a customer spends over time, and the Average Customer Lifespan is the length of time that a customer typically stays with the company. By multiplying these two numbers, you can determine how much a customer is worth to the company over their lifetime.

The formula to calculate the Customer Lifetime Value is as follows:

Customer Lifetime Value = (Customer Value * Average Customer Lifespan)

For example, let’s say we have a company that sells gym memberships. The average customer spends $100 per month on the membership and on average, stays with the company for two years. To calculate the CLTV, we would use the following formula:

CLTV = ($100 * 24) = $2,400

Therefore, the Customer Lifetime Value of a gym member, in this case, is $2,400. This information can be used by the company to determine its marketing and advertising budgets, customer retention strategies, and more.

Need to calculate your Customer Value? Click here.