Get Customer Lifetime Value Calculation Example Images. Using data from a kissmetrics report, we can take starbucks as an example for determining cltv. Once we repeat this calculation for all five customers, we average their values together to get the average customer's value of $24.30.

Jim spent $6 and billy spent $15 so billy is the kind of customer we care about.

Once we repeat this calculation for all five customers, we average their values together to get the average customer's value of $24.30. Because customer lifetime value models future potential, calculating clv can be as sophisticated as you need it to be. Customer lifetime value (clv, ltv) is the predicted total profit a customer will bring over the entire relationship with your company. Customer lifetime value is one of the most important metrics in your tool belt if you're an ecommerce retailer.