Calculating The Lifetime Value Of A Customer [INFOGRAPHIC]

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Calculating The Lifetime Value Of A Customer [INFOGRAPHIC]


What is one customer worth to a business, and what should a business be willing to pay to acquire the said customer?

It all comes down to a concept called “customer lifetime value”, which is used to describe the approximate value of one customer to a business. It is essentially the average amount of money made over the lifespan of an average customer, discounted by future cash flows.

H/T Visual Capitalist

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Calculating The Lifetime Value Of A Customer

Calculating The Lifetime Value Of A Customer Infographic

Original graphic by: KISSmetrics

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