##### Asked by: Atiq Kovar

asked in category: General Last Updated: 16th February, 2020# How do you calculate the average lifetime of a customer?

**calculate customer lifetime**value you need to

**calculate average**purchase value, and then multiply that number by the

**average**purchase frequency rate to determine

**customer**value. Then, once you

**calculate average customer lifespan**, you can multiply that by

**customer**value to determine

**customer lifetime**value.

Keeping this in view, how do you calculate the value of a customer list?

Once you **determine** the annual average cost to get a **customer** across all media, it is simple to multiply that average cost by the number of buyers to put a **value** on your **customer list**. Example: Your company has 100,000 buyers, and it costs you $10 on average to get a **customer**.

Furthermore, what is customer lifetime value with example? For **example**, if a new **customer** costs $50 to acquire (COCA, or cost of **customer** acquisition), and their **lifetime value** is $60, then the **customer** is judged to be profitable, and acquisition of additional similar **customers** is acceptable. Additionally, CLV is used to calculate **customer** equity.

Thereof, what is the average customer lifetime value?

The total revenue you can expect to get from each **customer** is your **average** order **value** divided by one minus the repeat purchase rate, or $50 / ( 1 - 0.1) = $55.56. Subtract your **customer** acquisition cost from that, and you get a **customer lifetime value** of $40.56.

How much is a customer list worth?

This is your individual customer's worth. Multiply the individual's worth times the number of clients you have. For example, if the individual's worth is **$750** you would multiply that amount by 12,470 customers to arrive at a base worth of **$9,352,500**.