Do you know of a chart that shows an estimate of each type of businesses CLV? It would be very useful to be able to quickly refer to when selling advertising.
So I am having trouble figuring out how I would calculate the LTV of high ticket customers. Like a decking company may build a deck for $5000 and that may be the average sale per customer for a whole yr. How do you calculate such a number with such low revisit frequency? I hope this question makes since. Thank you.
That would be your single purchase customer value. How often does that person return for other work? Maintenance? New deck 5 years down the road? How about adjacent services you sell to that customer? If you don't have these things in play you have a very "leaky bucket". Consider building these things into your value ladder and structuring your Customer Experience Map to include these things in the Customer Journey.
How can I calculate the churn if a customer is paying a flat fee for my service and, depending on the service, they could be an active customer for 2+ years?
Great video! I’m an eLearning Designer and I find that your video would be really helpful for a course we’re designing for York College of Pennsylvania. May I take your permission to insert a link to this video in the course? We would certainly add all the attributions required. Thank you!
If it is possible to have the actual profit for the duration of the relationship with a customer, should you use those data rather than multiply one year's profit from one year by the number of years of the relationship?
Dear Friends, I have a question: With a product have many versions, I want to estimate the life of a customer according each version to calculate the CLV, I think I will determine the life cycle of each version, right?. Thank you?.
Hi Scott! Would the cost of the coffee cups at Starbucks be subtracted from and figured into profit? Do you apply discounts into profit before you subtract? Or to marketing spend? And then profit (revenue-expenses) - marketing spend (banners, ads, etc.) * customer longevity= CLV? I love shark tank!🦈
The cost of cups would be subtracted from revenue as cost of goods sold, one part of the contribution margin calculation. Other costs subtracted from revenue are cost of service, delivery, and support. Think of these costs as those associated with customer demand. Is the cost higher with more demand? The advertising costs you mentioned go into the customer acquisition cost. We’ll look at different CLV formulas in class that account for things like retention costs separately and also consider the net present value of revenue streams. Good questions. I hope this clears things up.
Dear Friends, I have a question: 1/ in the CLV, the life of a customer is an estimate of the time between a customer's first purchase date and a customer's last purchase date, right?. Thank you.
Here it is not life but "Customer Lifetime", businesses commonly count per year, therefore the "Customer lifetime" here is linked with the no. of repeated purchases per year multiplied by no. of estimated years of an average person being a customer for the particular business.
Suppose you run a Fashion Garment Showroom, what will be the Customer Life Time Value if a consumer is estimated to do 5 transactions worth Rs. 2000 each and you earn a profit of 20% on every transaction? (Answer to be mentioned in whole number)
Great video, thank you. The illustrations were helpful.
After reading for hours the CLV finally you tube search and your video appeared. I was very easily explained. Thankyou ❤️
Thanks Scott after going after 5 videos i LANDED on your video and now I am super clear about CLV. Thanks a lot man more power to you :)
Well done and love the simplicity.
Really helpful thanks bud. Still so hard to do for my weird old business
Short and Simple! Very nicely delivered.Thank you.
Great information Scott!
Great video! I am thankful Professor Pettiette posted your link for the class!
Good Effort Scott Davis
Superb clear thanks ❤
Thanks Scott !
Great video. Thank you.
Very lucid explanation.thanx
Super clear! Thanks!
Fantastic
Thank you
Great video, clear and concise explanation. Thank you for posting.
DAHMER VIBES MAN
thanks , very clear
Hey man you did a great job explaining 👏🏻👍🏻
Hi scott great video, no need to stand unnecessarily close to the camera though.
Do you know of a chart that shows an estimate of each type of businesses CLV? It would be very useful to be able to quickly refer to when selling advertising.
So I am having trouble figuring out how I would calculate the LTV of high ticket customers. Like a decking company may build a deck for $5000 and that may be the average sale per customer for a whole yr. How do you calculate such a number with such low revisit frequency? I hope this question makes since. Thank you.
That would be your single purchase customer value. How often does that person return for other work? Maintenance? New deck 5 years down the road? How about adjacent services you sell to that customer?
If you don't have these things in play you have a very "leaky bucket".
Consider building these things into your value ladder and structuring your Customer Experience Map to include these things in the Customer Journey.
lovely
How can I calculate the churn if a customer is paying a flat fee for my service and, depending on the service, they could be an active customer for 2+ years?
Hi Scott, where can I find an article referencing this specific formula?
Thanks
I wonder if it's a way of trying to figure this out, before hand, to try to gauge how much to spend, on attracting customers?
really helpful Thanks :)
Great video! I’m an eLearning Designer and I find that your video would be really helpful for a course we’re designing for York College of Pennsylvania. May I take your permission to insert a link to this video in the course? We would certainly add all the attributions required. Thank you!
cool video
If it is possible to have the actual profit for the duration of the relationship with a customer, should you use those data rather than multiply one year's profit from one year by the number of years of the relationship?
How did you calculate the Customer Acquisition Cost of $5000 (what are the components of that number ) ?
Your analytics CPA
Dear Friends, I have a question: With a product have many versions, I want to estimate the life of a customer according each version to calculate the CLV, I think I will determine the life cycle of each version, right?. Thank you?.
Hi Scott!
Would the cost of the coffee cups at Starbucks be subtracted from and figured into profit? Do you apply discounts into profit before you subtract? Or to marketing spend? And then profit (revenue-expenses) - marketing spend (banners, ads, etc.) * customer longevity= CLV?
I love shark tank!🦈
The cost of cups would be subtracted from revenue as cost of goods sold, one part of the contribution margin calculation. Other costs subtracted from revenue are cost of service, delivery, and support. Think of these costs as those associated with customer demand. Is the cost higher with more demand?
The advertising costs you mentioned go into the customer acquisition cost. We’ll look at different CLV formulas in class that account for things like retention costs separately and also consider the net present value of revenue streams.
Good questions. I hope this clears things up.
Thank you!
Dear Friends,
I have a question:
1/ in the CLV, the life of a customer is an estimate of the time between a customer's first purchase date and a customer's last purchase date, right?. Thank you.
Here it is not life but "Customer Lifetime", businesses commonly count per year, therefore the "Customer lifetime" here is linked with the no. of repeated purchases per year multiplied by no. of estimated years of an average person being a customer for the particular business.
Suppose you run a Fashion Garment Showroom, what will be the Customer Life Time Value if a consumer is estimated to do 5 transactions worth Rs. 2000 each and you earn a profit of 20% on every transaction? (Answer to be mentioned in whole number)
really helpful and clear but the way you look into the camera is hyper creepy. pls be a bit more expressive