CLV Calculator

Calculate CLV

  1. Enter average sales price:
    Determine your average price for a sale.

  2. Enter cost per sale:
    Determine how much it cost you per sale.

  3. Enter average lifetime number of sales per customer:
    Determine how many sales does the average customer make in their relationship with your company.

  4. Enter cost to acquire a new customer:
    Determine how much does it cost for each new customer.

  5. Click on the "Calculate" button. Your results will be shown in the CLV box.

CLV Calculator

Benefits of Using a Customer Lifetime Value Calculator

CLV is an important metric to the success of your business. If calculated incorrectly, it could affect your overall performance. A customer lifetime value calculator will tell you the value of your customers and how they affect your business. As the CLV metric is so important, you should always use our calculator to ensure there are no miscalculations.

Here at WebCitz, we have created several PPC calculators which give you immediate and accurate results. We know that CLV is such a beneficial and important metric that we wanted to provide it to businesses for free. We want you to have all the information you need to create a successful campaign.

Frequently Asked Questions about CLV Calculator

+

What is CLV?

A CLV, or customer lifetime value, is a metric that companies use to determine how much revenue they can expect from a single client. Many companies use CLV to determine how valuable a customer account is to their business, and how it contributes to their revenue. Calculating your CLV is fast and easy with our customer lifetime value calculator!

+

Why is Customer Lifetime Value Important?

There are several reasons why tracking your CLV is important to your business:

Acquisition Cost

By using a CLV calculator to find out what your clients customer lifetime value is, it allows you to find areas where you may be paying more than you need to be. Depending on your business model, you may want to take a look at your budget and how much it costs to convert customers. For example, you may think that spending $20 per week for a month in pay-per-click ads fits well into your budget, but you find out that you're getting customers that only have a lifetime value of $200. You should aim to have a CLV that helps you earn an impressive revenue, even with customer acquisition costs added in.

Find out what your CLV is for your business with a customer lifetime value calculator. Help determine what is an adequate and profitable amount to spend on marketing and advertising to keep your revenue strong.

Tracking Client Costs & Revenue

You may have an issue that you have a decent amount of clients but your revenue does not seem to reflect it. There are two main reasons why this could be happening, the first is that you have a high number of clients that won't stay a client for long, and the second is what we discussed prior to overspending on the marketing.

If you have poor client retention then you need to take a look at your CLV and assess potential problems as to why your consumers don't stay long. One potential solution is by using an online customer lifetime value calculator to assess if a potential client has a high or low CLV. If low, then the rate of them staying for a long period of time is also low. When you use a CLV calculator, you'll be able to determine a certain client profile that is likely to have a low CLV in the future. From this, you'll be able to determine what kind of clients aren't going to provide a high CLV and avoid taking them on in the future.

For the second situation, when spending a high amount of money on marketing causes your revenue to be lower than desired, using a CLV calculator can help you determine an appropriate budget and stay profitable. This will allow you to be able to determine how much marketing budget you have compared to how much your target audience spends with your company.

Campaign Health

You can benefit from using a customer lifetime value calculator to gain insight into the health of your marketing campaigns and their overall performance. If you have an adequate amount of clients that have a high customer lifetime value, it means that your campaigns and business are on the right track. CLV can also help you understand if you're spending the right amount on marketing and advertising and if you need to cut back.

+

How to Improve Your CLV?

Are you disappointed in your CLV results? If so, you're not alone. Many businesses are surprised when their business yields less-than-desirable CLV results. But there are ways to improve this important metric.

Increase Customer Retention Rate

One of the biggest things to affect your customer lifetime value is how long they're a customer and how frequently they make a purchase. When you fail to retain customers and your you have a high churn rate, it means that customers aren't sticking around long enough to positively impact your CLV. To boost your CLV, you'll want to brainstorm ways to increase your customer retention. This could include something that's unique to your company, like sending a free gift. Or, it could be something a bit more generalized like having better communication with your customers. Any way you slice it, you should pay close attention to your retention rate if you want to have an impressive CLV.

Understand Customer Needs & Wants

To keep your customers sticking around and to increase their customer lifetime value, it's important to look for different ways that you could potentially increase their satisfaction with your company. This could be by sending out an exciting and beneficial monthly newsletter from your business. Or, it could be by including a free sample as a gift. Finding simple and small ways to satisfy your customers can help them feel valued and increase the chance of them staying longer.

Email Us

Let's Talk About CLV Calculator PPC!