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SIMPLE CUSTOMER LIFETIME VALUE ANALYSIS

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Simple customer lifetime value calculations for small business owners. Customer Lifetime Value is an estimate of measure of the total worth to a business of its relationship with a particular customer. Customer lifetime value analysis is a useful tool for businesses that sell goods or services.  It helps in estimating future revenue each customer can bring to your business.  By analyzing customers purchasing history, you can use it to analyse and determine your long term customer strategies. In this post, we'll look at benefits of customer lifetime value analysis and how to make simple customer lifetime value calculations. Finally, how to use a custom function on Google Sheet to calculate customer lifetime value.

Benefits of customer lifetime value analysis  When the customer lifetime value analysis is done properly across the database, it can help businesses in the following ways:
To improve market segmentation 
Customer lifetime value can help to improve market segmentation. For example…