A Customer Lifetime Value (CLV) helps determine the financial impact of acquiring and retaining customers, making it a valuable metric for business growth and marketing strategies.
To calculate CLV, several key factors need to be considered:
The data shown below is just a sample computation to show you how you can get the Lifetime Value of your customers.
First-time customer sale value is 100$
Recurring sale revenue is 100$ ( this refers to the sale you are generating every time your customer is doing a repurchase or renewal of the services/products)
The average number of sales per year ( refers to the number of times that customers go back to repurchase or renew the products/services in a year)
The average number of years ( let’s say your regular customers are availing the products/ services in 2 years )
Your Customer Lifetime Value would be 1300$
Please note that patients tend to have multiple visits and non-medical leads are sometimes 1 purchase/buy.
How much is a customer worth?
Use our CLV calculator to calculate your data https://marketingdr.co/customer-lifetime-value-calculator/