Customer lifetime value refers to the total worth a customer brings to a company throughout their entire relationship with the brand. By analyzing key metrics associated with CLV, businesses can gain valuable insights into customer behavior, purchasing patterns, and future revenue potential.
Key Metrics for Customer Lifetime Value Find Out More...
Up-selling is changing the consumer’s decision from a lower priced product to a higher priced product. With cross-selling, we sell additional products or a greater volume of products to the same consumer.
Difference between Up-selling and Cross-selling Find Out More...
Customers = a businessA fundamental truth is that a business only exists when it has customers, and for most businesses, the majority of their profits come from ongoing transactions with customers.Therefore, the goal of the marketer is to understand the key opportunities to maximize profitability for the firm (or the brand) over time, and often
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“Share of Hearts” is a qualitative measure of marketing success. It differs from the more tangible metrics (such as market share, that is based on sales) and focuses on the less tangible aspects the consumers’ emotional engagement with a brand.
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Generation Edge, also known as Gen Z, is a demographic group that is currently coming of age and significantly impacting consumer culture. Born after the Millennials, they are the children of Gen Xers.
Age Cohorts and Gen Edge Find Out More...
Free online CLV calculatorThe following free online CLV calculator is ideal for quick calculations of customer lifetime value. If you need a more detailed calculation of customer lifetime value, please download the free Excel template for calculating customer lifetime value.How use the free online CLV calculatorYou only need to enter three numbers – into the
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How to Use the Full CLV CalculatorYou only need to enter four numbers – please only type over the numbers in the white cells – the numbers in the orange cells are automatically calculated for you.To calculate the customer lifetime value, you will need to enter:Average customer acquisition costsAverage customer profit contribution per yearAverage annual
Full CLV Calculator (with Financials) Find Out More...
There are five CLV videos available here:Using the free Excel CLV template (available for download on this site)A step-by-step guide to the CLV formula and calculationUsing Excel to calculate CLV (without the above template)A guide to understanding discount ratesAn overview of financial metrics for marketing
Videos on CLV Find Out More...
What does a discount rate do?Discount rate converts future cash flows (that is revenue/profits) into today’s money for the firm. For example, if you put $100 into a bank account today that have 10% interest, then in 12 months’ time you would have $110 in the bank. In this case, $110 next year is equivalent
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Understanding the financial metrics for customer lifetime valueThe full customer lifetime value calculator and the free Excel CLV template both provide a summary outcome for several related financial metrics. Please refer to the image below of the full CLV calculator. As you can see, at the bottom, there are multiple financial metrics listed, including:CLV (with
Financial Metrics for CLV Find Out More...
