Once In A Lifetime

How to calculate lifetime value

There are two types of people in this world: those that love math and those that don’t. (This is actually slightly backed up by science). I happen to fall into the former as math has always come naturally. I remember working with my dad (who was a math major) for hours on various problems – both simple and complex. From an early age, I was taught how to calculate percentage discounts in my head. 

We're here to make it much simpler than this

However, not everyone has the same affection for algebra, trigonometry, and abacuses as I do. For them, calculating something like how much you can expect a customer to spend at your business (over a set period of time, not just once) can be daunting. Depending on how many layers you want to add, calculating the lifetime value (LTV) of a customer can be admittedly daunting. Depending on how many layers you want to put on the calculation, it can admittedly be daunting. However, it be a great tool as it can tell you how much to spend on customer acquisition, whether you should boost your retention efforts, or if your margins are too low. 

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