MS-Excel Templates

Customer Lifetime Value (CLV) Calculator & Model

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  • Customer Lifetime Value multi-phase life Calculator
  • Customer Lifetime Value What-if Model
  • Customer Lifetime Value Calculator
  • Customer Lifetime Value Menu


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Customer Lifetime Value (CLV) Calculator & Model

Customer Lifetime Value (CLV) is the total monetary value of transactions/purchases made by a customer with your business over his entire lifetime, i.e., the time till your customer ceases to make purchases.
It is a very important business metric as it estimates how much every customer will be worth to you over the course of their lifetime with your business.
CLV value is calculated multiplying the value of a purchase, e.g. $100 multiplied by the frequency of the purchase, e.g., 50 per year multiplied by the active life of the customer, e.g., 3 years, giving a lifetime value of 100 by 50 by 3 equal to $15,000. The greater the frequency with which they make a purchase, the greater the value of that purchase, and the longer a customer continues to purchase from a company, the greater their lifetime value becomes.

While our template calculates the CLV, it goes beyond just calculating the CLV revenue, it also calculates the gross margin contributed by the customer, which provides a more complete picture of the customer value than just considering the revenue contribution. The customer acquisition cost (CAC) can also be incorporated.
A second module of the template can be used to calculate a more granular CLV by using the option to break the lifetime down in five phases, e.g., start-up, rapid growth, steady demand, declining demand, and end of life. The user defines the number of phases and the parameters, such as purchase value and frequency, which may be different for each phase.

A third module of the template provides a “what-if” model of each of the components that make up the lifetime value, e.g., “what-if” the frequency of purchase increased by 10% while the lifetime reduced by 5%, or "what-if" the lifetime could be extended by another year. The model allows for up to five variations of each of the three variables that make up CLV, providing up to 15 “what-if” scenarios and the associated impact on CLV revenue and gross margin.

The CLV is especially useful when compared with Customer Acquisition Cost (CAC).
There are three possible outcomes:

  • Where the CAC is greater than the CLV each customer acquired clearly contributes to a loss.
  • Where the CAC is equal to the CLV the business is stagnant. It also has negative cash flow implications, as the acquisition cost is front loaded, and it takes the full customer lifetime to recover the acquisition cost.
  • Where the CLV is greater than the acquisition cost, each customer acquired clearly contributes to growth and profitability.

Overall CLV can be increased by improving any of the variables that make up the CLV. Our “what-if” modelling can be particularly useful in this regard.
You can use the customer lifetime value to identify customer segments that are most valuable to the company.
CLV informs you how much you should spend on acquiring customers in any particular segment.
Marketing and sales strategies can be developed to target those most valuable segments with the highest CLV.
Upselling and understanding and responding to the customer's broader needs helps to increase the value and/or frequency of purchases.
Excellence in customer service and account management will help to extend the active life of the customer.

This product is included in our Marketing Math Collection.

Key Features: Customer Lifetime Value (CLV) Calculator & Model

Key features of the Customer Lifetime Value (CLV) Calculator and Model are: 

  • Calculated CLV based on value of purchases, frequency of purchases and duration of active lifetime.      
  • Both lifetime revenue and gross margin are calculated.
  • A separate module provides the option to breakdown the total lifespan into up to five phases.
  • Each phase can have distinct values for purchase value, frequency and phase timespan
  • A third module provides a "what-if" model that allows the impact of a range purchase values, frequency and life duration to be calculated
  • You get all three! Click on the images above to enlarge.
  • Only standard Excel features are used.  No macros! No passwords!
  • The Excel calculator/model is fully customizable.
  • Download immediately! If you have MS-Excel, you are ready to go.
  • Comes with a comprehensive Customer Lifetime Value (CLV) Calculator and Model User Guide available to download to check the full details before purchasing
  • Comes with a NO Quibble Money Back Guarantee

Other Similar/Related Products

A comprehensive range of other marketing templates are available.  These include:

Need Something Different

If the features of the CLV Calculator and model are not exactly what you need, please contact us and we will see if we can meet your needs.

No Quibble Money Back Guarantee

Check out the Customer Lifetime Value (CLV) Calculator and Model User Guide for full details.
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