The unit of average customer value

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If you want to calculate the average LTV of a group of customers, the brand will need to calculate two key figures: "Average Customer Value (ACV)" and "Average Customer Lifespan (ACL)". is "yuan/period of time", and the average customer life span will also be measured based on the aforementioned time. For example: the average customer value is "400 yuan/year" and the average customer life span is 20 years, then the average customer lifetime value is 8,000 yuan. Some brands have shorter product cycles or lifespans, so it may be more appropriate to calculate LTV in months. For example: the average customer value is "200 yuan/month" and the average customer life span is 20 months, then the average customer lifetime value is 4,000 yuan.

Formula 2: Average customer value = average customer price * average purchase frequency
In the above formula, the average customer value can be divided into two parts: "Average Purchase Value (APV)" and "Average Purchase Frequency Rate (APFR)". For example: the average customer russia whatsapp phone number price is 200 yuan, the average purchase frequency is 2 times a year (customers spend 200 yuan on average each time, and consume 2 times per year on average), so the average customer value is "400 yuan per year."

Formula 3: Average customer lifespan = sum of customer lifespans/total number of customers
In Formula 1, the average customer life span can be calculated by "summing customer life span" and "total number of customers". The customer life span of each customer is different. When calculating the average customer life span, you can calculate the average life span of this group of customers by dividing the sum of customer life spans by the total number of customers. Assume: Brand has three customers ABC. A has been consuming the brand for 5 years, B has been consuming for 10 years, and C has been consuming for 15 years. Then the average customer life span of this group of customers is: (5+10+15)/3 = 10 (years).