Calculate the customer's average purchase value and average purchase frequency. These two data indicate the customer's purchasing behavior. Average purchase amount = sales revenue / number of purchases Average purchase frequency = number of purchases / number of individual customers 4. Calculate your customer lifetime value Now you have everything you need to calculate your CLV.
The simplest way to measure customer lifetime value is to use deutschland phone number the following formula: CLV = (Average Purchase Value x Average Purchase Frequency) x Average Customer Lifetime With this calculation, your CLV is measured based on sales revenue rather than profit. It doesn’t take into account the costs of customer acquisition and retention. The customer lifetime value formula is average purchase value times average purchase frequency times average customer lifetime Example of Calculating CLV for a B2B Business Let’s look at a B2B company that provides cloud-based online management tools.
The period we will study is a calendar year. Sales revenue during the period was The business has issued 1,900 invoices (purchased quantities) and has 158 customers. Average purchase value per purchase Average purchase frequency purchases in a year (e.g. monthly subscription) Average customer longevity years Customer lifetime value CLV then tells us that each customer generates an average of in sales revenue over the course of their relationship with the business.
發表於 2024-2-18 13:36:19
