The free online CLV calculator below is great for quickly calculating client lifetime value. Please download our free Excel template for estimating customer lifetime value if you require a more complete estimate.
You must enter three numbers – average new client acquisition cost, annual per-customer profit contribution, and annual customer retention rate – into the white cells. It is based on the simple CLV formula described on this website.
Please do not enter the orange cell because the customer's lifetime value will be calculated automatically (in a few seconds).
Marketers generally seek a positive client lifetime value much more than the cost of acquiring a new customer. A low client lifetime value is a big concern that a revamped marketing strategy and expense reductions must address.
A discount rate is not included in this basic online CLV calculator. As a result, with a high customer retention rate, there is a risk that this simple CLV calculation will dramatically exceed the genuine customer lifetime value position. Please use the full CLV calculation if a discount rate is required.
And, if you need to calculate customer lifetime value for a company or a big university assignment, you should use the free Excel template on this site and read a few articles to gain a better knowledge of CLV.