Customer Lifetime Value Calculator (CLV)

How can you determine your customer lifetime value? Use our free customer lifetime value tool to determine exactly what you need to know.

Customer Lifetime Value

Customer lifetime value calculators are a part of SEO and all other marketing.

For those who do not know, the CLV calculator can be a useful tool for optimizing customer experience with your website or business. If you are unsure how, keep reading.

Customer lifetime value is important because with this measurement, the higher the number the higher the profit a company makes. 

Below you will find info about the fast and meaningful impacts of calculating customer lifetime value.

Customer Lifetime Value Calculator

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Customer Lifetime Value Calculator (CLV)

CLV or customer lifetime value is a measurement to calculate the total worth of a customer to a specific company. 

A CLV calculator gives you a quick and easy measurement so that you can begin to make changes in your SEO to get a better value in the future. In essence a CLV calculator will quickly and accurately help you determine the value of your clients.

SEO Design Chicago offers full service SEO packages that cover all website and client metrics. Customer Lifetime Value is absolutely included in these packages and SEO Design Chicago can offer strategic help to address issues with your CLV measurements.

CLV Calculator

Benefits of Using a Customer Lifetime Value Calculator

It’s quick, easy and accurate. A CLV calculator is a useful tool for any business trying to find their customers potential and estimated worth.

Customer lifetime value calculators give a business many different indications for positive or negative marketing strategies. At the end of the day this metric is very powerful and helpful for any business.

CLV can help with any of the following:

Making Marketing Strategies Clearly Aligned with Revenue Targets

With CLV there is a clear link between marketing campaigns and how it is affecting revenue. For this reason customer lifetime value is considered a very important measurement for any business.

Using a CLV calculator can influence direct changes to revenue. Make sure to consult with your SEO or marketing agency before making changes, as they will be able to fully scale your intentions with your business.

Test out Marketing Strategies by Analyzing CLV

Customer lifetime value can be a very important indicator as to whether certain marketing techniques are working. If you make a point to monitor your businesses’ CLV and work consistently with your SEO and marketing agency, you now can inform strategic decisions based on real time revenue data. 

Personalized CLV Calculations

With a customer lifetime value calculator you can begin to specify which customers have higher potential spending and which customers have lower potential spending.

Let’s say you are running a social media campaign and wish to see how effective this campaign is in terms of revenue production. You can calculate the CLV of each customer and track whether they clicked through to your website with social media links and posts, or whether they found you organically on Google.

Now you can see which customers are impacting your revenue the highest, and which marketing channel they are arriving at your website from. Of course this information works itself into a revised and more efficient marketing strategy to better optimize your website moving forward.

At SEO Design Chicago managing and calculating customer lifetime value is a major part of what we do. To learn more about our SEO services check out the following article, SEO Strategies for Every Business.

Online CLV Calculator

When Should I Use an Online CLV Calculator?

CLV calculators are a bit confusing. That’s why it’s important to know what this tool can help you with, so you know a potential fix. Some of the topics below cover common scenarios that answer the question, “when should I use an online CLV calculator?”.

When you want to know the worth of your customers. CLV online calculators are important because they are reliable and shape how you approach your marketing strategy. If you are nervous about the math take the plugging in method and trust the calculator.

When using a calculator make sure to double check results before changing a marketing strategy. Most importantly talk with your SEO agency to get professional suggestions on how to stay on top of CLV.

Cohort Analysis

A cohort refers to a group of people, in this case customers on your website, that share similar characteristics. In terms of marketing decisions, you can treat these customers as a group that will respond to similar marketing messages.

A CLV calculation of a few members of one cohort can give you insight into what a whole group of similar minded people think of your business. This tactic is similar to that of sampling a portion of the population in statistics, and one of the quickest ways to draw conclusions from customer lifetime value calculations. 

Marketing Costs are too High

Needless to say, acquiring new customers will be a major part of your marketing strategy. But what if this process is simply costing your business too much?

With a CLV calculator you can measure each customer’s hypothetical return on investment. What is meant by ROI in this instance, is the predicted revenue gained by one customer. 

Customer lifetime value calculators can help you make informed decisions about where to spend marketing dollars and whether or not they are worth it. After all, sinking money into marketing efforts is only worth it when you achieve revenue results.

Revenue Drops

If you are experiencing a significant revenue drop that cannot be explained, a harmless test to run is a few calculations with a customer lifetime value calculator. Often with SEO and digital marketing tactics the internet ecosystem shifts around, like in the case of a Google core update, and this will affect customers on your website. 

In these instances, a quick check of customer lifetime value can give you and your marketing team information about how to resolve issues with revenue.

How to Calculate CLV

“To calculate customer lifetime value you need to calculate average purchase value, and then multiply that number by the average purchase frequency rate to determine customer value. Then, once you calculate average customer lifespan, you can multiply that by customer value to determine customer lifetime value.” – Hubspot.

CLV calculators are easy to use and give you the final story on your customer lifetime value. It’s important to consult with your SEO agency or marketing team to make sure that you are implementing changes that positively affect your CLV.

Over time CLV monitoring should be a common practice for any business and a part of an overall marketing plan.

Calculating CLV

How to Improve your CLV

Customer lifetime value is important for many different reasons and is affected by many different things. While CLV is often a measurement to indicate growth in revenue, this metric can also serve as a test of your marketing strategies. 

When considering how to improve CLV think about all the aspects of your marketing strategy. Below are a few of the most common reasons your CLV may be low.


First impressions are important. To make sure your customers are enjoying their time on your website and their relationship with your company a good deal of focus should be put into the onboarding strategy.

Try testing different onboarding strategies with your marketing team, focus on personalizing each experience and much more.

Customer Retention Rate

Customer retention rate gives you a sense of how well a company can retain its customers. However, at the basis of customer retention rate is a positive impact on customer lifetime value.

When you use a CLV calculator and end up with problematic results, think about ways to increase customer retention, as these very customers will impact how much your revenue is increasing over time.

CLV Calcualtions

Customer Satisfaction

Make sure that customers are satisfied with the product and overall experience with your company. Here you can focus on so many things from user experience to loading speed and website design.

Additionally, begin to consider customer service channels and other ways that a customer can be satisfied with your product. In the end someone who is satisfied over a long period of time will continue to purchase from you.

Other things that any business should consider for CLV improvement are:

Offer Free Shipping 

Free shipping is known to make users spend more or increase the number of items in their cart. For an Ecommerce business, free shipping can improve customer spend significantly and should be one of the considerations when looking to increase CLV.

Comparison Pricing 

When offering price comparisons you are doing your customer a service. They no longer have to manually compare prices with others and can make a quick and informed decision when purchasing. In turn this will positively affect your CLV

Reward Best Customers

Rewarding brand loyalists and frequent purchasers of your website with rewards programs or membership benefits is not only a way to keep customers around for a while, but also a smart and effective way to increase overall customer spend.

As always, with any questions about CLV and how to calculate it, refer to the professionals at SEO Design Chicago for advice on how to better optimize your SEO today!