Calculate Customer Lifetime Value

The Lifetime Value of a Customer

Cumulative Revenue
Cumulative Gross Margin
Present Value of Revenue
Present Value of Gross Margin

How much is a customer worth to you? In order to really know that, its often important to look at the amount of business they'll give you over the course of their lifetime as a customer and not just based on an individual purchase. Knowing how much each customer that you can bring through the door will deliver in sales and profit is an important consideration when you're making marketing decisions and incurring expenses to obtain new customers.