It’s a simple question, but it’s not always the easiest to answer. Knowing the lifetime value of a customer allows you to establish a baseline for the expected value of a new customer, which is handy information to know when creating marketing and sales strategies.
So, how do you find the lifetime value of a customer? With our nifty Lifetime Value calculator.
We took all the hard work (math) out of calculating lifetime value. All you need to know are the numbers for each field below.
That’s it. Lifetime value is actually a pretty simple multiplication problem:
AVG Purchase Price X # of Purchases a Year X # of Years Customer Stays = Lifetime Value