Calculate what customers are truly worth so you can spend appropriately to acquire them.
Customer lifetime value is how much revenue a customer generates over their entire relationship with you. We calculate CLV for your business, then use it to guide acquisition spending. Knowing CLV lets you confidently invest in growth.
The Challenge
Common problems we solve
No visibility into how much customers are actually worth
Spending $1000 to acquire customers worth $300
Assuming all customers have same value
High growth but negative unit economics
Don't know which customer segments to focus on
What's Included
Here's what you receive
CLV Calculation Framework
How to calculate CLV specific to your business model
Historical CLV Analysis
Actual CLV from customers acquired 12+ months ago
CLV Projections
Expected CLV for new customer cohorts
Segment Analysis
CLV broken down by customer segment (size, industry, geography)
CAC Spend Recommendations
How much to spend acquiring customers based on CLV
Why It Matters
How it works
CLV is the north star metric that guides all growth decisions. Once you know what a customer is worth, acquisition spending becomes a simple calculation. Can't afford to spend $500 acquiring if CLV is $300? Stop that channel. Can spend $1000 and CLV is $5000? Invest heavily.
Understand true value of a customer
Know how much to spend acquiring customers
Identify which customer segments are most valuable
Make investment decisions based on unit economics
Identify customers at risk of churning early
Focus on retention of high-CLV customers
The Process
How customer lifetime value works
Analyse past customer revenue: initial purchase + repeat purchases
Calculate average revenue per customer
Estimate customer lifespan with your business
Subtract cost of serving (support, fulfillment)
Calculate margin per customer over lifetime
Set acquisition spending targets based on CLV
Best For
Who this service is ideal for
Recurring revenue businesses (SaaS, subscriptions)
E-commerce with repeat purchase opportunity
Service businesses with ongoing client relationships
Any business wanting to understand growth profitability
Complementary Services
Related services to explore
Customer Acquisition Cost
CAC is the most important growth metric you're probably not tracking. We calculate your true customer acquisition cost across all channels, identify which channels are profitable, and optimise spend to improve margins.
Churn Analysis
Churn is silent profit killer. We measure why customers leave, identify at-risk customers before they churn, and implement strategies to improve retention. Reducing churn 5% often creates more value than acquiring 50% more customers.
Analytics & Reporting
Without analytics, marketing is guesswork. We implement comprehensive tracking across your website, email, ads, and CRM so you see exactly which campaigns and content drive customers. Monthly dashboards show what's working, what's not, and where to focus next.
FAQ
Frequently asked questions
Use cohorts. Look at customers acquired 12+ months ago to see their actual lifetime value. Project new cohorts based on patterns.
At minimum 3:1 (CLV 3x CAC). Better is 5:1 or higher. If CAC is higher than CLV, you're losing money.
Huge. If customers leave in 6 months, CLV is half of what it would be if they stayed 12 months. Reducing churn is highest-leverage growth move.
Yes. Some customers spend more or stay longer. Enterprise customers might have 10x CLV of SMB customers. Segment your analysis.
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Ready to get started with customer lifetime value?
We can help you implement customer lifetime value and start seeing results. Book a consultation to discuss your specific needs and explore how this service can transform your business.