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Customer Lifetime Value (also referred to as LTV, CLTV or CLV), is an important metric that reflects how much any given customer is expected to spend on or for your business, over their lifetime. Essentially, it measures the profit any one customer will generate for your business over their lifetime. The CLV metric assesses each customer's financial value to your business, as well as the competitive allure and purchasing power your business commands. This is very useful when compared with the Customer Acquisition Cost, CAC, which is a measure of how much it costs to attract and convert a new customer.
CLV becomes a very important consideration when contemplating about sales, marketing, and even product development. Considerations such as what marketing strategy should be deployed, what products to market to which customers and how, and what kind of customers are most strategic to target, all pass through considering the CLV.
This template will help you answer these questions and more. Review the results in Excel or via chart, and see it in a single glance on your dashboard.
CLTV - customer lifetime value formula Excel template
Reference industry standards and benchmark against them.
Plan your company's future growth strategically
See all key outputs and statistics via your executive dashboard
Make business decisions with greater confidence