Overview
This Lifetime Value (LTV) Template is a great tool to calculate the Present Value of the LTV of a customer. This is an important metric for marketing professionals, who want to set a limit to their cost per acquisition. The LTV calculation is closely linked to the LTV/CAC Ratio, a template for the LTV/CAC Ratio is available for download for free on the marketplace. Value of a customer is an estimate of the net profit that a customer would generate to a company. It is an important metric in marketing and is used together with the customer acquisition cost to determine the potential profitability of marketing initiatives. It is a popular metric used by e-commerce marketing professionals. This excel template will take the following assumptions as inputs:
  • Average Order Value
  • Contribution Margin per Order
  • # of Orders per Year
  • Customer Retention Rate (annual)
  • Discount Rate
From these inputs, the template will calculate the LTV and the Present Value of LTV. Thank you for downloading the Lifetime Value (LTV) Template.
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