Customer Lifetime Value, usually referred to as LTV (quite often as CLTV or CLV), measures the profit your business makes from any given customer. The purpose of the customer lifetime value metric is to assess each customer's financial value, or from a typical customer in case, you measure it generally.
Customer lifetime value helps you make critical business decisions about sales, marketing, product development, and customer support, such as:
- How much should I spend to acquire a customer?
- Who are my best customers? How can I offer products and services tailored for them?
- How much should I spend to service and retain a customer?
- What types of customers should sales reps spend the most time on?
This template will help you answer these questions and review the results in the charts on the dashboard.
CLTV - customer lifetime value formula Excel template
Benchmark your company against the industry standardsPlan for Future Growth
Executive dashboard to visualize the outputs of the toolEasy-to-use tool to make business decisions
CLTV Customer Lifetime Value Charts
Customer lifetime value formula