Customer Lifetime Value Calculator
Do you know how valuable your customer are to your business?
When it comes to business, and picking up a calculator it can be one of the most mundane and difficult tasks. I was never taught the importance of maths for business purposes, so when I have to calculate important figures, it is always a pain of a task.
The most important calculation you will do for your business, is working out your customer’s lifetime value. This is the value a customer will contribute to your business over the entire lifetime of your company.
This calculation is usually done on a per customer basis, but is determined for the average customer in yourtarget market. If you have more than one target market, you may find that there is a different in customer lifetime worth.
WHY IS CUSTOMER LIFETIME VALUE IMPORTANT?
It is no news to you that it costs more to acquire a new customer, than it does to retain an existing one. Understanding your CLV (customer lifetime value) is crucial for increasing profitability, retention and overall sales success. Here are three reasons why your CLV should be a vital part of your business model, and customer retention strategy.