CLV Calculation Examples

[fomayof928@mowline]

CLV Calculation Examples
Let's put this into practice with a couple of simplified examples (which do not take the Churn rate into account).

The first refers to a simple bar . Assuming that the store has indonesia phone number list an average receipt of €4. The most common customer is the worker, who stops by for a coffee in the morning or during his lunch break, on average twice a week, 50 weeks a year (based on working days, holidays, etc.) for an average of 5 years.

The formula will then be:

CLV = €4 (average sale per customer) x 100 (annual visits to the bar) x 5 (years) = €2,000

Each customer for the bar is worth approximately €2,000.

Example number two: subscribing to a Saas (Software as a Service) subscription.

Let's start from a common assumption among many companies, that is, that there are different subscription plans. Let's take into account the average monthly expenditure of the typical customer, which is equal to €17.