Customer Lifetime Value Calculator

Calculating Customer Lifetime Value (CLV) helps businesses estimate the total revenue a customer generates over their relationship with the company. It's crucial for optimizing marketing spend and improving customer acquisition strategies.

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Calculate Customer Lifetime Value

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How to Calculate Customer Lifetime Value?

Customer Lifetime Value calculation involves multiplying the average purchase value by the average number of purchases per year, then multiplying by the average customer lifespan (in years). For example, if the average purchase value is $50, customers make 3 purchases per year, and the average customer lifespan is 5 years, the CLV would be $50 * 3 * 5 = $750.

Customer Lifetime Value Calculation

Customer Lifetime Value formula

CLV = (Average Purchase Value) x (Average Number of Purchases per Year) x (Average Customer Lifespan in Years)
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