Projected LTV

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Calculating the projected LTV will help you understand how much your customers will spend on purchasing goods from the company. To do this, you need the following information: the average check amount in the store, average data on the number of sales made during the month and the period during which customers make purchases in the store, average gross profit. The data is taken from the CRM database or company documents, SVP is calculated separately.

The predicted LTV is considered more canada business email list complex than the historical one. The formula looks like this:

LTV = ((average number of orders per month × average check amount) × SVP) × average number of months of customer retention.

Example. The store has 300 customers, each of whom makes a purchase once a month, the average check amount is 500 rubles. On average, customers make orders in the store for 24 months. The service SVP is 0.8. This means that LTV will be 9600 rubles for one customer.

An important aspect of company management is hardware and software. In order to correctly, quickly and effectively evaluate the life cycle of clients and make important calculations, these processes need to be automated. Otherwise, you can waste a lot of valuable time on painstaking manual work.

And, of course, it is impossible to systematize the data obtained during the analysis without competent and experienced specialists, who are the main resource in any business.