Decoding the Lifetime Value Formula

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Decoding the Lifetime Value Formula

Know (don't guess) who your most valuable customers are
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Free Worksheet
Decoding the Lifetime Value Formula
Know (don't guess) who your most valuable customers are
Fill out the form to get your free download.
settings
settings
settings
Get the guide
By submitting this form, I agree to the terms in Ontraport's Privacy Policy.

Not every customer brings the same value to your business. Some passively buy one or two things, while others are superfans. You may have a loose idea of who your most valuable customers are, but calculating the customer lifetime value (CLV) is the only way to accurately find those superfans. Once you do that, you can find more leads like them, tailor your product or service, and even win more referrals.

Calculate the CLV of each segment of your business with easy, step-by-step formulas using our free worksheet Decoding the Customer Lifetime Value Formula.
  • Specific, easy-to-calculate formulas that will reveal an accurate measure of your average customer lifetime value so that you can focus on your best buyers to grow faster

  • Segmentation tips for carving up your customer list into more useful groups to find relevant differences in CLV that you can use to refine your marketing strategy

  • Clear definitions and explanations of each aspect that may influence the CLV so you’re never unclear about where to pull numbers from

  • A detailed process for understanding your customers' average referral rate and referral profit per customer so you can find more high-value referrers

  • Tips for breaking down the acquisition cost per customer so that you can focus your marketing efforts on the leads who cost less to acquire but spend the most with you

  • A quick and easy way to calculate variable costs per customer segment so that you can see which group takes up the most resources, allowing you to cut back and focus where it counts

Not every customer brings the same value to your business. Some passively buy one or two things, while others are superfans. You may have a loose idea of who your most valuable customers are, but calculating the customer lifetime value (CLV) is the only way to accurately find those superfans. Once you do that, you can find more leads like them, tailor your product or service, and even win more referrals.

Calculate the CLV of each segment of your business with easy, step-by-step formulas using our free worksheet Decoding the Customer Lifetime Value Formula.
  • Specific, easy-to-calculate formulas that will reveal an accurate measure of your average customer lifetime value so that you can focus on your best buyers to grow faster

  • Segmentation tips for carving up your customer list into more useful groups to find relevant differences in CLV that you can use to refine your marketing strategy

  • Clear definitions and explanations of each aspect that may influence the CLV so you’re never unclear about where to pull numbers from

  • A detailed process for understanding your customers' average referral rate and referral profit per customer so you can find more high-value referrers

  • Tips for breaking down the acquisition cost per customer so that you can focus your marketing efforts on the leads who cost less to acquire but spend the most with you

  • A quick and easy way to calculate variable costs per customer segment so that you can see which group takes up the most resources, allowing you to cut back and focus where it counts

"Customer Lifetime Value is the calculation of what a customer might be worth to your business over the course of doing business with you, perhaps over the course of a few years as opposed to a single transaction. This change in point of view often leads business owners from viewing marketing as an expense to viewing it like the investment it can be."
- John Jantsch, Creator of Duct Tape Marketing
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