Calculating Customer Lifetime Value

Average Purchase Value (APV)

Average Purchase Frequency (APF)

Customer Value (CV)

APV × APF = CV

Average Customer Lifespan (ACL)

Customer Lifetime Value (CLV)

Putting it all Together

Ways to Improve Customer Lifetime Value

  • Paying careful attention to the initial customer experience, and providing exceptional onboarding processes. This means that brands need to ensure that customer queries are swiftly attended to while products and services are of the highest quality. The first impression on a customer is a major factor for CLV results.
  • Retaining customer relationships by fostering brand loyalty through personalized services, and loyalty programs that offer incentivized services.
  • Retargetting past customers who have become inactive. Provide a reminder of the brand’s offerings with a soft approach. Businesses dealing with perishables will have an easier time convincing customers to replace expired items via renewed patronage.

Seeking Professional Support

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Aaron M Welch

Aaron M Welch

28 Followers

#Digitalmarketing entrepreneur with over 20 years of experience in start-up, small, mid-market, & enterprise businesses. http://www.linkedin.com/in/aaronwelch