Business
Customer Lifetime Value Calculator
CLV for marketing decisions.
Total profit from a customer over their lifetime.
Formula
Avg Purchase×Frequency×Lifespan×Margin.
Example
$50×12/yr×5yr×40%=$1,200 CLV.
Why It Matters
Guides acquisition budget. Identifies high-value segments.
Frequently Asked Questions
What is CLV?
Total profit from a customer over entire relationship.
Calculate?
Avg purchase×frequency×lifespan×margin.
Why important?
If CLV=$1,200, spending $200 to acquire is justified.