LTV Calculation

Wiseguys CRM provides a real-world way to calculate customer Lifetime Value (LTV). With the knowledge of your average LTV, you know how much you can afford to spend to acquire a new customer.

With WiseGuys CRM you can calculate the actual (not forecasted) LTV for each customer. The calculation is based on:

  • Actual customer spending by year
  • Cost of goods sold
  • Customer acquisition cost (based on the customer original source code or customer type)
  • Annual marketing cost (e.g., retention expense)

Selection Filters

You can apply selection filters when you perform LTV calculations to analyze one portion of your customer base. For example, you might be targeting retail customers and want to avoid including data from wholesale customers in your LTV calculation.

The WiseGuys CRM control panel allows you to filter the raw data, down to the customer level if desired, to reduce the noise level and manage the parameters of your customer data. The control panel includes the following five filters:

  • Customer Type – You can choose to include only certain types of customers in the analysis. For example, you might include only retail and exclude wholesale.
  • Product Class – You can select certain product classes and exclude others. For example, you could ignore catalog orders or free promotional items.
  • Source Code – You can include certain source codes. For example, you might want to ignore point-of-sale customers.
  • Sales Territory – You might want to select certain geographic areas and exclude others.
  • Division Code – You can include or exclude company divisions. For example, you might include wholesale and exclude retail.

You’re Invited – Attend Webinar on LTV

How to Calculate Your Lifetime Value (LTV)
‘Webinar Wednesday’ – the 1st Wed. of each month.

In this 30-minute webinar,  you will learn a simple method for calculating Lifetime Value using information already available in your order management system. You will receive a free Excel spreadsheet with the Lifetime Value formulas you need.

Every attendee gets a free 30-minute consultation to discuss how to calculate Lifetime Value in your specific situation.