How do you calculate Customer Lifetime Value (CLV)?

How to Calculate Customer Lifetime Value (CLV)

How do you calculate Customer Lifetime Value (CLV)?

Depending on your industry, there are a number of ways to calculate Customer Lifetime Value (CLV).

If you sell a monthly service, you could take your (average revenue per monthly per customer) X (gross margin) X (the average number of months a client stays with you).

If you run a home service business (HVAC, plumbing, etc.), you might take your (average revenue per job) X (gross margin) and also take into account the number of times a customer uses you over a period of, say, 10 years and how likely they are to refer you to other people. </p>

For more information, check out web analytic page.

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Answered by: Connie Lad, Walker International

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