Handy excel worksheet calculates the Lifetime Value of Customers

Calculate customer lifetime value
Calculate customer lifetime value

How much is each customer worth?

What is it worth to invest in developing a relationship with each new customer, given that you can market to him or her over time?

Values in blue are sample data — Replace these values with your own numbers.

Observe the affects of each additional referral on the Net Present Value of each Customer.

This will tell you a lot about the importance of quality customer service and overall satisfaction with your product or service.

Download and customize this Excel template

calculate the lifetime value of a customer