Detailed Lifetime Value & Comparison Template

  • Version 1.0
  • Download 555
  • File Size 25kB
  • File Count 1
  • Create Date June 4, 2017
  • Last Updated August 25, 2020

Life Time Value is a simple concept but it can get pretty complicated.  This workbook has been created to help you understand some of the basic principles, but you'll need to adapt it to your company's specific needs.  We hope that you enjoy playing around with it.  It will help you get a feel for the factors that have a big impact on the long term value of customers.  Then consider how you could change your acquisition and retention marketing to deliver business advantage.

The  Comparison LTV  worksheet  lets you model  2 different types of customers.  We've created  it as "Best" and "Average" customers, but it could be re-worked as "Search" and "Affiliate" acquired customers, or "People who bought product A" and  "People who bought product B".   Of course, you could add a third category to give a spread of best, average and worst, so feel free to adapt the sheet to suit your objectives.

Before making BIG business decisions on your workings so far, you'll probably need  to validate your thinking through the Detailed LTV worksheet.  It goes into much more detail for each specific customer profile.  For example, take your profile data from the "Best" or "Average" customers and work through the calculations, creating 2 separate sheets as you go.  You will then be able to look critically at the LTV of both segments over a long period of time.  If you only want to look at 3 years, delete a couple of columns - adapt it to your needs...we won't mind!



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