Prepared by a marketing lecturer, designed for university-level students
The customer’s assessment of their satisfaction following a purchase and consumption of a product involves a comparison of two views:
The 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 … Read more...
You 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 … Read more...
There are five CLV videos available here:
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...
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...
The leaky bucket theory is more of an analogy than a theory. It is used because it is a nice and simple way of understanding the concept of customer relationship management and how to … Read more...
The customer lifetime value equation essentially views a customer as an income stream. So instead of considering the customer’s purchases as single transactions, the marketing focus becomes creating ongoing series of profitable transactions. These … Read more...
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...
There are two main approaches to calculating customer lifetime value.This article discusses the simple approach to calculating customer lifetime value – which is appropriate to use when customer profit contribution to each year are relatively flat. It is also a … Read more...
Why has customer lifetime value – along with many other marketing metrics – becoming more important for marketers to use and understand? One of the key drivers is the shift from “art” to “science” in … Read more...
Customer lifetime value is a measure of customer profitability over time. To help explain this concept, let’s start with a formal definition of customer lifetime value (CLV) from a well-regarded marketing metrics textbook. In the … Read more...
Customer lifetime value has three main components:
The final component in the customer … Read more...
Customer lifetime value has three main components:
The main component of the customer lifetime … Read more...
The calculation for customer lifetime value has three main components:
This is the amount of money it … Read more...
When considering the goal of trying to increase a customer’s lifetime value, one of the main levers is to attempt to increase loyalty/retention which will increase the length of time a customer remains a customer.
In the customer lifetime … Read more...
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...
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...
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...