Customer Lifetime Value Calculator
Welcome to our free Customer Lifetime Value (CLV) calculator! CLV is a critical metric for businesses to understand because it represents the amount of money a customer is likely to spend over the course of their relationship with your company.
By understanding CLV, you can make informed decisions about how to allocate your resources and focus your efforts on acquiring and retaining high-value customers. Our CLV calculator makes it easy for you to estimate the CLV of your customers and use that information to drive business growth. Simply enter your customer data and we’ll do the rest!
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Customer Lifetime Value Calculator
CLV = (customer value x average customer lifespan)
The customer value is the average amount of money that a customer spends on a business’s products or services in a given time period (e.g., per month, per year). It is important to note that the customer value is not the same as the price of the products or services being sold. For example, if a customer buys a product for $100 and is expected to make additional purchases totaling $200 in the next year, the customer value would be $300 per year.
The average customer lifespan is the expected length of time that a customer will continue to make purchases from a business. This can be expressed in days, weeks, months, or years, depending on the specific business and its products or services.
To calculate the CLV, you need to know the customer value and the average customer lifespan for your business. You can use data such as customer purchase history, customer segmentation, and customer retention rates to estimate these values.
Once you have these values, you can plug them into the CLV formula to calculate the total amount of money a customer is expected to spend on your business over the course of their relationship with you. This can be a useful metric to help you understand the value of your customers and make informed decisions about marketing and sales strategies.
Conversion Lifetime Value Calculator
Customer Lifetime Value Formula
The Customer Lifetime Value Formula is CLV = (customer value x average customer lifespan)
The customer value is the average amount of money that a customer spends on a business’s products or services in a given time period (e.g., per month, per year). It is important to note that the customer value is not the same as the price of the products or services being sold. For example, if a customer buys a product for $100 and is expected to make additional purchases totaling $200 in the next year, the customer value would be $300 per year.
The average customer lifespan is the expected length of time that a customer will continue to make purchases from a business. This can be expressed in days, weeks, months, or years, depending on the specific business and its products or services.
To calculate the CLV, you need to know the customer value and the average customer lifespan for your business. You can use data such as customer purchase history, customer segmentation, and customer retention rates to estimate these values.
Once you have these values, you can plug them into the CLV formula to calculate the total amount of money a customer is expected to spend on your business over the course of their relationship with you. This can be a useful metric to help you understand the value of your customers and make informed decisions about marketing and sales strategies.