One simple way to
calculate customer lifetime value is average monthly spend per customer divided by monthly customer churn rate.
Not exact matches
Some
calculate the average months instead, generating a
lifetime value per
customers.
One way to analyze acquisition strategy and estimate marketing costs is to
calculate the
Lifetime Value («LTV») of a
customer.
Once you
calculate the
value of a conversion (either with an average sale, or average close ratio and
customer lifetime value, depending on the nature of your conversion), you can measure conversions and assign a roughly accurate figure to the overall ROI of your campaign.
The question of
calculating lifetime value (LTV), also known as
customer lifetime value (CLV), sooner or later pops up before the developers of mobile games and apps.