Customer Lifetime Value tells you what a customer is actually worth to your business over time. It is the number that determines how much you can afford to spend to acquire a new one.
Customer behaviour
$
yrs
%
Growth targets
%
Your results
Customer Lifetime Value
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Profit Lifetime Value
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Annual revenue per customer–
Max spend to acquire 1 customer–
Suggested monthly marketing budget–
Fill in the fields above to see your results.
Profit CLV = CLV x gross margin. The “max spend to acquire” is your Customer Acquisition Cost ceiling. Most businesses set this at 10-30% of CLV to remain profitable over a customer lifetime.