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Customer Lifetime Value (CLV) Calculator

Estimate the long-term value of your customers based on their spending habits, purchase frequency, and retention period.

Calculate Customer Lifetime Value

The Customer Lifetime Value (CLV) Calculator helps businesses determine the total revenue a customer generates during their relationship with your company. Understanding CLV enables better marketing investment decisions, retention strategies, and revenue forecasting.

Formula:

CLV = Average Spend per Purchase × Purchases per Year × Customer Lifespan (Years)

Example:

If a customer spends $50 per purchase, makes 4 purchases per year, and remains a customer for 5 years, the CLV is:

CLV = 50 × 4 × 5 = $1,000

By calculating CLV, you can focus on acquiring high-value customers and retaining them for long-term profitability.

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