Lido's FREE customer lifetime value calculator allows you to quickly discover the lifetime value (LTV) of your customers so that you can make more informed decisions on your marketing budget. A higher lifetime value means you can afford to spend more on advertising on the front end because you will make they money back on the back end. Our lifetime value calculator uses the formula:
Average Purchase Value * Average Purchase Frequency (Per Year)* Average Customer Lifespan (Per Year) = Customer Lifetime Value
In an example scenario our campaign has the metrics:
Average Purchase Value: $130
Average Purchase Frequency: 4
Average Customer Lifespan: 6.5
130 * 4 * 6.5 = $3380
So what is a good customer lifetime value?
A lot of users who use our lifetime customer value calculator ask us this question. This metric varies widely depending on the industry you are in. There are many metrics to consider such as average profit margins in your industry, average purchase frequency and Customer loyalty. At Lido we encourage our users to constantly test and improve all of their KPIs. In the example scenario above, just small changes can have a huge impact on your bottom line. Use the other calculators on our site to manage your marketing campaign with a data driven approach.
Now that you have optimized your CLV, you should use our instagram ads calculator to get key insights into your business so you can make the most out of your instagram advertising. If you prefer to acquire customers through organic traffic from social media, Lido has you covered with our facebook engagement rate calculator so you can make more of the content that is working and use a data driven approach to your marketing.