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.
Answered by: Connie Lad, Walker International