Skip to content

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 short answer

Customer lifetime value (CLV) is the total profit a business expects to earn from a customer over the whole of their relationship — based on what they spend, how long they stay and the cost of serving them — used to judge how much it can sensibly spend to acquire one. It’s one function of Revenue Intelligence within your Growth Hub — part of a connected back office.

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

01

Analyse past customer revenue: initial purchase + repeat purchases

02

Calculate average revenue per customer

03

Estimate customer lifespan with your business

04

Subtract cost of serving (support, fulfillment)

05

Calculate margin per customer over lifetime

06

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

FAQ

Frequently asked questions

Can't find the answer you're looking for? Get in touch

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.