Customer Lifetime Value Calculator
Estimates total revenue a business can expect from a single customer over their relationship
Enter all fields to calculate CLV
Average value per customer per year
Frequently Asked Questions
What is customer lifetime value (CLV)?
CLV estimates the total revenue a business can expect from a single customer over the entire relationship. It is calculated as average purchase value times purchase frequency times average customer lifespan. Higher CLV justifies higher acquisition costs.
Why is CLV important?
CLV helps you decide how much to spend acquiring customers, which customer segments to prioritize, and where to invest in retention. A business with high CLV can afford higher marketing spend and still be profitable.
How do I increase CLV?
Increase purchase frequency through email marketing and loyalty programs, increase average order value through upsells and cross-sells, extend customer lifespan through excellent service and engagement, and reduce churn by addressing pain points proactively.
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