Customer Lifetime Value Calculator
Calculate CLV to understand long-term customer profitability
Customer Data
Understanding Customer Lifetime Value (CLV)
Customer Lifetime Value represents the total revenue you can expect from a customer throughout their relationship with your business. It's calculated using: CLV = (Average Order Value × Purchase Frequency × Customer Lifespan) × Gross Margin
Why CLV Matters
- • Determines customer acquisition budget
- • Identifies most valuable customer segments
- • Guides retention investment decisions
- • Informs pricing and product strategies
Improving CLV
- • Increase average order value through upselling
- • Boost purchase frequency with loyalty programs
- • Extend customer lifespan via better service
- • Optimize margins through efficient operations