Customer Lifetime Value Calculator (CLTV)

Customer Life Time Value is the predicted net profit attributed to the entire future relationship with a customer. CLTV also defines the upper limit for Customer acquisition.

Why is it important to know LTV:CAC?
  • Throws light on the ROI generated by your sales and marketing team
  • Indicates the total value your company gets from each customer against the amount you have spent to acquire that new customer
  • Helps you strike the mean path by keeping this ratio within a normal range, neither too high nor too low.
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7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.

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Other Calculator

Customer Acquisition Cost Calculator (CAC)
Customer Acquisition Cost Calculator (CAC)
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Marketing % Of Customer Acquisition Cost
Marketing % Of Customer Acquisition Cost
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Ratio of Customer Lifetime Value to CAC
Ratio of Customer Lifetime Value to CAC
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Time to Payback CAC
Time to Payback CAC
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Marketing-Originated-Customer-_
Marketing Originated Customer %
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Marketing Influenced Customer %
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Month on Month Growth Calculator
Month on Month Growth Calculator
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Why these 7 metrics are significant for your business and should be measured at regular intervals?

FAQ

Answers to Frequently Asked Questions about CLTV

What is CLTV ?

Customer Life Time Value is the predicted net profit attributed to the entire future relationship with a customer. CLTV also defines the upper limit for Customer acquisition.

What is Average Value of Transaction ?

Average Value of Transaction is the average value of sale.

What is Average Profit ?

Average Profit is the percentage net profit per sale.

What is Transaction Frequency ?

Transaction Frequency is the average number of transaction a customer does in a year.

What is Average Retention ?

Average retention is the average number of years a customer stays (i.e. continues to pay for product or service).