Customer Lifetime Value Calculator
Calculate your Customers LTV Quickly and Easily
A single customer often purchases your product or service more than once.
Think about how many times do you go to a nail salon? or a hairdresser? over a year's time? and how many times do you purchase the same shampoo?
The answer is always more than one. Customer lifetime value allows you to quantify the big picture.
For example, Starbucks estimates that the average lifetime value of their customer is $14,099.
This means that even if they spend $14K to acquire a single customer, the company will still remain profitable in the long term.
Remember that some of your customers are more profitable than others.
The Pareto principle (also known as the 80/20 rule) suggests that 80% of all your revenue comes from 20% of your customers.
As a business owner, you need to understand which customer segments can give you the highest returns.
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