How To Calculate Customer Lifetime Value For Any Business!

Why is it that some of the largest companies in the world are willing to spend millions of dollars in order to turn us into customers and not even worry if they break even on their customers?

That’s because successful companies know what their customer lifetime value is (CLV).

Why is knowing your CLV important?

Calculating your customer lifetime value is important for many reasons, most notably your clv helps you better understand what your marketing strategies should be and the marketing formulas you should follow to determine your campaign’s success.

Customer lifetime value let’s you know how much you should be charing for your services, it let’s you know how much you can pay to acquire a client, it let’s you know if there are opportunities to create more value for your clients and make more money, it let’s you know if your customers are leaving you, at what month (know as “leaky bucket syndrome”), and so much more.

So how do you calculate customer lifetime value?

In this video I’m going to show you what I think is the simplest method at determining your customer lifetime value, however understand there are dozens.

I challenge you to write down what your CLV is and maybe identify where there are some areas for improvement.

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