Below is the answer and explanation for how do you calculate customer lifetime value?

How do you calculate customer lifetime value?

• You’ll need to audit the expenses of all of your customer success efforts. Once you add all expenses into one sum, you can divide that value by your total number of customers to get your average customer lifetime value.
• Multiply your average purchase value by your average purchase frequency rate. Then take that value and multiply it by your average customer lifetime value. ✅
  
• Divide the number of customers who renewed their subscription by the number of users who are up for renewal. Then, multiply your result by 100 to determine your customer lifetime value
• Multiply your total number of active customers by your average revenue per user.

Correct answer

Multiply your average purchase value by your average purchase frequency rate. Then take that value and multiply it by your average customer lifetime value. ✅

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