Customer Lifetime Value Formula: Lifetime Customer Value = Sale per Client ($) * Avg Purchases Per Year * Years Customer Purchases
Customer Lifetime Value Definition Use our Customer Lifetime Value Calculator to instantly calculate how much a customer is worth over the entire time he/she is your customer. Using the Customer Lifetime Value Calculator online is a very quick way to learn how to calculate lifetime customer value for your company.Simply enter in the average dollar amount of each sale per client, the number of average purchases that the customer has over the course of a year, and the average number of years that a customer will remain your customer. Calculating the lifetime value of a customer is a very important number of any business to understand because it drives so many of the marketing and customer acquisition decisions. Once you understand the hard and fast numbers behind the lifetime customer value of your customers then you are in a much better position to make key business decisions like how much you are willing to spend to acquire each new customer. Try out the free online Lifetime Customer Value Calculator now!
Average Dollar Sale Per Client
2. Average Number of Times a Client Buys Per Year
3. Average Number of Years a Client Buys Your Products Or Servies
How to Calculate Customer Lifetime Value Let's be honest - sometimes the best customer lifetime value calculator is the one that is easy to use and doesn't require us to even know what the customer lifetime value formula is in the first place! But if you want to know the exact formula for calculating customer lifetime value then please check out the "Formula" box above.