Average Purchase Amount =
Repeat Purchase Rate =
Days Between Purchase =
Gross Margin =
Annual Interest Rate =
Customer Acquisition Cost =

Customer Lifetime Value $ =
Based on the above,
we can help you improve your
Customer Lifetime Value by $

=

Customer Lifetime Value

Determine the Value of your Customers

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What is Customer Lifetime Value?

​Customer Lifetime Value (LTV) measures the amount of net cash that a customer will generate over its lifetime.  LTV can produce actionable data-driven decisions about your customers by answering questions like:
  • How much marketing and sales dollars should be spent to acquire a customer?
  • How much time, money and effort should be dedicated to retain customers?
  • ​Who are the best customers?
  • How can we sell more products to our customers?
  • Are we allocating sales and development resources to maximize profit opportunities?

​LTV is calculated by totaling the gross profit margin of a customer's purchases over its lifetime, reduced by the rate of repeat purchases, time value of money, and the cost of acquiring a customer. Visit your blog about UBER to see LTV in practice!

How is Customer Lifetime Value Calculated?