Customer Lifetime Value Calculator

Do you struggle with figuring out how much you need to spend on marketing activities?

One place to start is by determining what your customer lifetime value (CLV) means to your business. Calculating the CLV is useful for planning your marketing budget needs and for gauging what your return on marketing spend is.

CLV is a more advanced way to look at the health of the business as it relates to marketing’s impact. It’s more thoughtful than a straight “return on ad spend” (ROAS) measurement, because CLV factors in repeat business and customer loyalty. In other words, marketing that “earns” a repeat customer should be credited for it. It’s particularly useful if the cost to acquire a customer is high, as is the case in many paid programs (paid search, advertising, etc.). 

This customer lifetime value calculator takes your average purchase value, purchase frequency, and customer loyalty into consideration. The resulting calculation also includes an option to factor in how customer referrals may impact the lifetime value.

Because this is just a high-level look, there are many reasons why the results may not match your situation. I’m happy to discuss how to improve any of these numbers with you in a private consultation.