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’ … Read more...
Category: Metrics
Financial Metrics for CLV
Understanding the financial metrics for customer lifetime value
The 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 … Read more...
Main CLV Formula
Let’s look at the main CLV formula is two ways – the first way in words and then as a CLV equation (see separate article on another one of my websites). As you will see, the main customer lifetime value … Read more...
The average lifetime of a customer
Customer lifetime value has three main components:
- The acquisition cost of customer
- The annual profit of customer
- And the lifetime of the customer to the firm
The average lifetime of a customer
The final component in the customer … Read more...
The annual profit of a customer in CLV
Customer lifetime value has three main components:
- The acquisition cost of customer
- The annual profit of customer
- And the lifetime of the customer to the firm
The annual profit of a customer
The main component of the customer lifetime … Read more...
Customer Acquisition Costs
The calculation for customer lifetime value has three main components:
- The acquisition cost of customer
- The annual profit of customer
- And the lifetime of the customer to the firm
Customer acquisition costs
This is the amount of money it … Read more...
Difference between Marketing and Financial Goals
Marketing strategy is designed to deliver short-term financial and marketing goals and to build and strengthen the firm’s competitive advantages over time. A firm that has significant competitive advantages will enjoy greater profitability and stability of performance.
Difference between
… Read more...How to calculate a customer’s lifetime in years
A key aspect in the customer lifetime value (CLV) calculation is time spent as a customer – commonly referred to as the customer’s lifetime. When we refer to the customer’s lifetime in a marketing context, we are considering the … Read more...
Using the free Customer Lifetime Value (CLV) template – VIDEO
This website has a free Excel spreadsheet template that can enable to quickly calculate customer lifetime value for your university assignment or for your firm. Go here to download the customer lifetime value template.
There are also step … Read more...
Free download of the customer lifetime value Excel template
If you need a customer lifetime value calculation, then a free Excel spreadsheet template is available for download here… free clv template download
How to use the customer lifetime value Excel template
When you open the spreadsheet, it should … Read more...
Understanding customer lifetime value (CLV)
Customer lifetime value or CLV is a key marketing metric that is primarily used in relationship marketing oriented organizations. In simple terms, it is the profit attributable to an individual customer during their time as a customer with the … Read more...