How To Calculate Customer Lifetime Value For Your Business

Use Forrester’s CLV Template To Learn How CLV Works

August 2nd, 2021
Brandon Shaik, null
Brandon Shaik


Customer lifetime value (CLV) allows companies to predict the future profitability of their customers, yet firms struggle to calculate it. This report gives business leaders a foundational understanding of how to calculate this elusive metric. The accompanying CLV Template is an Excel model you can use to get hands-on experience in calculating CLV for one customer as a way to understand how this metric works. It walks you through a series of steps to identify the right CLV approach for your business and allows you to input data to predict the future profitability of one customer over the next five years.

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Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.