Customer Lifetime Value - Concept, Calculations and Examples - Simplest Explanation Ever

[@Muhammed-MUH]

Thank you so much for this valuable content. Having the ability to explain these concepts in such a simplified way is an underrated skill. Keep up the good work👌

[@MisterSimplify]

You're most welcome Mohamed. Really glad I was able to help you. Hope you keep sharing and keep supporting! 😊

[@MisterSimplify]

Who spotted the Tip which could help one remember the CLV calculation used in the main example? At what time point does the tip appear? :)

[@donVader85]

I m waiting for someone to say Darude Sandstorm!

[@MisterSimplify]

@@donVader85 Oh dear me! :D

[@amaldasnv6310]

Thank you sir

[@poonbeat]

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.

[@austinusen3050]

Hi, thank you for this. Question, can you calculate CLV as a new business without historic data?

[@MisterSimplify]

Hi Austin. For a typical CLV anaylsis, there needs to be some historic data for sure. If not, one could try some market research to look at demand and customer expectations to try and arrive at a potential CLV until real data is built up.

[@ntcuong01ct1]

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?.

[@MisterSimplify]

Hello. Yes, that's correct. Since you're interested in finding the value of each version independent of other ones, this would be the way

[@jasimm476]

Thank you so much for this great explanation I have 2 questions: 1) how can the profit be 37 while the revenue from each customer or transaction value is only 20 ? 2) since everything needs historical data then any new company can not calculate or anticipate the customer lifetime value except after a few months, so CLV is not applicable to new businesses?

[@banjara8998]

there are two scenario first 20 dollar is not the last or the only transaction . in this case study 20$ IS THE SPENDING PER TRANSACTION SECOND THE AVERAGE LIFETIME IS 5 MONTH SO IN FIVE MONTH CUSTOMER CAN DO MULTIPLE TRANSACTION

[@hasanmahmud4808]

Greatly benefited. May I request you for CLV calculation for Fintech ?

[@MisterSimplify]

Hi Hasan. I will look into your request. I have been rather busy lately, but will try. Thanks!

[@ntcuong01ct1]

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.

[@MisterSimplify]

Hi Ytuong. Yes that is correct!

[@marsuemura3106]

Thank you sir. Your video was very informative and easy to understand.

[@MisterSimplify]

You're most welcome! I am glad you found it useful, and hope that you continue supporting us! 😊