Customer Lifetime Value Calculator

Expected Customer Value

Customer lifetime value estimates the gross profit expected from one customer over the relationship period.

Formula: CLV = order value x purchases/year x lifespan x gross margin.

Understanding Customer Lifetime Value

1. What This Calculator Measures

Customer lifetime value estimates the gross profit a customer may generate over the relationship period.

2. How the Calculation Works

The calculator multiplies average order value, purchase frequency, lifespan, and gross margin percentage.

3. Formula or Rule Used

CLV = order value x purchases per year x lifespan x gross margin.

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