Customer Lifetime Value
Estimate simple revenue-based customer lifetime value from average transaction, purchase frequency, and customer years.
How to use
- Enter average transaction value, annual purchase frequency, and relationship years.
Capabilities and scope
The special runner uses amount×frequency×years as cumulative customer revenue.
How it works
CLV=amount×frequency×years.
Example
50,000×4 purchases/year×3 years gives 600,000 revenue CLV.
Useful for
- Compare simple revenue value across customer segments
Before you use it
- This is not a margin-, retention-, discount-rate-, or CAC-adjusted LTV model.
Frequently asked questions
Is CLV the same as profit?
No. This implementation is cumulative revenue based.