Customer Lifetime Value Calculation in 60 Seconds

Learn how to calculate customer lifetime value in just 60 seconds. Customer lifetime value, also referred to as LTV, is a great tool for learning how to better understand your customers and the potential value they bring to your company. The customer lifetime value calculation is as follows:
(Average Purchase Value) x (Gross Margin %) = (Gross Profit)
(Gross Profit) x (Average Purchases per Month) x (Expected # of Months Retained) = Lifetime Value
If you need help estimating the number of months your customers will be retained, you can use this formula:
1 / (Monthly Churn Rate %) = (# of Months Retained)
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[@amarnath_]

That was good explanation. Thank you so much.

[@edo_far]

Amazing! what software do you use to edit your videos?