Customer Lifetime Value Calculator

Sometimes the company does not know how long the average client lives. So, the lifetime value formula is designed to find that out. Basically, calculating LTV customer means finding out the sum of money a user is expected to spend with your business in total or spend on your products, or on using your services during the lifetime of an average business relationship.

Measuring customer lifetime value with the help of a customer lifetime value calculator is essential because the amount of money a customer is anticipated to spend with your company for the duration of your relationship with that individual is an important revenue index. And the lifetime value equation is an important metric, with the help of which there is a way for you to approach and define your business, as well as vary significantly depending on what you're trying to get from your company in the future.

When measuring CLV, it's best to look at the total average revenue generated by a customer and the total average profit metric to find out the total income period a business may bring.

How to calculate clv? The easiest clv calculation formula will be as follows: Customer Lifetime Value = multiplying your customers' average purchase value, average purchase frequency, and average customer lifespan. Discover a clv calculation example to get a clear idea of the process.

Customer lifetime value calculation with the help of a clv calculator automates and optimizes your work. It will make clv formula marketing work fast and exact. Companies can better prioritize their focus and funds if they know how to calculate the lifetime value of a subscriber instead of wasting time on manual calculations and searching of marketing measurements.

You put your figures into the fields to find out CLTV automatically. Thus you calculate the average value purchase and then multiply that number by the average number of purchases to determine customer value and their exact loyalty to your brand. In case you need a more detailed calculation process of customer lifetime value, contact the Creabl team.

To learn more how to calculate lifetime value of a customer and improve CLV you may implement a range of activities:

• Offer referral programs,
• Implement targeted, customized, and personalized sale campaigns,
• Listen to your customers,
• Create valuable content to keep users engaged,
• Optimize customer services, etc.

You may also offer cross-selling and upselling strategies to benefit and tend to reward your most loyal customer segment.

Lifetime Value (LTV) shows the amount that customers will bring via their transactions over the total time they interact with your company. That is a metric that is aimed at measuring the net profit attributed to an ongoing relation between customer and product. While Customer Lifetime Value (CLV) better shows how much a customer will bring over the total time they interact with your company. Thus, this is the present value of a company's customers based on past or predicted purchases.