Customer Lifetime Value Calculator
At its base level, the calculation for the lifetime value formula is:
CLV = Customer Value (CV) * Average Customer Lifespan (ACL)
There isn’t a universal customer lifetime value (CLV) formula due to varying data needs across businesses and industries. In addition, calculating CLV is simpler for some businesses, like B2C e-commerce using its order management system data, while B2B companies often face more complex research requirements. A simple way to compute Customer Lifetime Value (CLV) is by using this online calculator.
Now that you’ve calculated your CLV, how do you use the number? Should you calculate CLV for different customer segments (hint: yes!)? For these CLV insights and more, check out our blog on how to maximize profits using customer lifetime value.