Customer lifetime value calculator
Enter your average order, how often a customer buys, how many years they stay and your margin. Parcels that come back are taken out, so you see what a customer really earns you.
Profit from one customer
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After parcels that come back.
Most you can spend to win a customer
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Orders placed
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Orders delivered
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Profit on delivered orders
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Lost on returned parcels
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Not sure of your margin? Work it out per order with the COD profit calculator. Setting an ad budget? Try the ad break-even calculator.
Now you know what a customer is worth. Go and win them.
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What is customer lifetime value (CLV)?
It is the total profit one customer brings you for as long as they keep buying from you. It is profit, not sales, so what the goods cost you is already taken out. It tells you what a new customer is worth before you pay for an ad to find one.
How do I calculate customer lifetime value?
Multiply your average order value by the orders a customer places in a year, by the years they stay, and by your margin. This tool also takes out parcels that come back. Delivered orders earn the margin, and each returned parcel costs you what you enter as the return loss.
How does cash on delivery change the answer?
On COD, some parcels are refused or never picked up. They earn nothing and still cost you the courier charge and packaging. Enter the share of orders that come back and what each one costs you. Your courier’s report shows the share.
How much can I spend to win a customer?
At most the profit that customer brings you over their lifetime. Spend all of it and you only break even, so the tool lets you set the share you are ready to spend. A lower share leaves more profit with you.
Where do I find orders per customer per year and how long customers stay?
Export your orders for the last year and group them by phone number. The average count per customer is your orders a year. For years, see how many customers ordered again after twelve months. If you are new, start with a low guess and update it after a few months.
What margin should I enter?
The share of the order value left as profit on a parcel that is delivered, after the product, packaging and the courier charge you pay. The COD profit calculator on this site works it out for one order.