How much is a customer worth to you? To really know that, it is often important to look at the amount of business they will give you over the course of their lifetime as a customer and not just based on an individual purchase. Knowing how much each customer that you can bring through the door will deliver in sales and profit is an important consideration when you are making marketing decisions and incurring expenses to obtain new customers.
Calculate Customer Lifetime Value
The Lifetime Value of a Customer
Cumulative Revenue
$ 816.49
Cumulative Gross Margin
$ 200.09
Present Value of Revenue
$ 698.30
Present Value of Gross Margin
$ 152.82
The lifetime value of a customer, based on your evaluation period and deduction of acquisition costs is $152.82 in present value gross margin.