Lifetime Customer Value Calculator
Understanding your Lifetime Customer Value (LCV) is important for understanding how much to spend to acquire a customer, and the long-term financial impact of retaining your customers.
How to use the LCV Calculator:
Step 1: Enter Average Purchase Value (APV)
This is the average amount of money a customer spends each time they make a purchase from your business.
Example: If customers typically spend $50 per purchase, enter “50” into the APV field.
Step 2: Enter Average Purchase Frequency Rate (APFR)
Input how often, on average, a customer makes purchases from your business within a year.
Example: If customers make about 2 purchases per year, enter “2” into the APFR field.
Step 3: Enter Customer Value Period (CVP)
Input the average duration in years that a customer continues to make purchases from your business.
Example: If customers typically remain active for 5 years, enter “5” into the CVP field.
Step 4: Click “Calculate LCV”
The calculator will process the information and display the estimated Lifetime Customer Value (LCV) based on your inputs.
Adjust the inputs (APV, APFR, CVP) as necessary to explore different scenarios or customer segments.
Repeat the calculation process to estimate LCV for various customer profiles or business strategies.
Calculate Lifetime Customer Value (LCV)
Result:
Lifetime Customer Value (LCV): $0.00