Customer LifeTime Value (CLTV)
What is CLTV?
One of the most important ways to analyze your business is to calculate the lifetime value (CLTV) of your customers. You can’t predict the future, so it’s what I like to refer to as a “realistic customer value projection”.
The core goal is to improve the lifetime value of every customer walking into your store.
So, let’s say your average customer spends $20 a month and statistics show the average customer stays a customer for at least 3 years. The CLTV is $20 x 12 months x 3 years = $720.
Improving the lifetime customer value will become your main priority. Because if you and I manage to raise that $720 by $200 a year, you’ll be in heaven.
So let’s talk about how I can help you.
Free CLTV calculator
Calculating the CLTV is extremely important because it helps you predict the future of your business.
CLTV predicts how much profit you can expect from the average client during the period a client stays a client.
There are many methods to calculate the customer lifetime value and this calculator comes pretty close to predicting the CLTV you could work with.
Please do not base your business decision on this calculator only. It’s purely informative and, I repeat, it’s a prediction.