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
Frequently Asked Questions
How do I know if Ontraport is the best CRM software for me?
When you’re shopping for a platform for your business, you’ll want to take your entire business into account — not just your CRM needs. Whether you choose Ontraport or not, we recommend making sure the platform you choose includes the following features, at the very least:
- A website or page builder to share your business with the world online
- A system for capturing leads and sending marketing emails
- An automated sales pipeline that keeps your deals moving
- A payment processing tool to collect orders and charge credit cards/li>
Of course, you’ll probably need more sophisticated tools as your business continues to grow. With Ontraport, you’ll have everything you need now and in the future — all under one roof.
Take a look at our buyer’s guide for a complete checklist of all the features to keep in mind throughout your software search. It’ll help you find the perfect platform for your business (even if you don’t choose Ontraport).
Take a look at our buyer’s guide for a complete checklist of all the features to keep in mind throughout your software search. It’ll help you find the perfect platform for your business (even if you don’t choose Ontraport).
What kind of data can I collect and store with Ontraport’s customer relationship management software?
You can use Ontraport’s CRM platform to track, store and organize all your business data in one place! Our advanced contact tracking captures every page visit, link click, form fill-out, purchase and much more. You can even use custom record types to manage your sales deals and companies, events and attendees, teachers and students and any other data you use to run your business.
Is Ontraport the best CRM for small businesses?
We built our CRM software for small business owners like you who are ready to scale. Our features will grow with you, and you’ll never end up with a price tag that’s disproportionate to your business size. From the moment you sign up, we consider ourselves as a partner in your business, offering you over-the-top helpful support and setup services to make sure you have what you need to grow for the long haul.
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