Neil Patel (CrazyEgg & Kissmetrics) and Eric Siu (Growth Everywhere & Single Grain) bring you daily ACTIONABLE digital marketing lessons that they've learned through years of being in the trenches. Whether you've just started a website or you manage millions of pageviews, Neil & Eric will help you take it to the next level.
How to Determine Customer Lifetime Value | Ep. #382
In Episode #382, Eric and Neil discuss how to determine customer lifetime value. Tune in to learn the simplest formula you can use to calculate your customer lifetime value. Eric and Neil also drop several online tools that simplify the process and will do the math for you.
Time Stamped Show Notes:
00:27 – Today’s topic: How to Determine Customer Lifetime Value
00:38 – There are multiple ways to determine customer lifetime value
00:52 – Eric shares an example of a SaaS company’s customer lifetime value
00:55 – Neil’s Crazy Egg has a churn of 10%, which is the number of customers who stopped using the product
01:08 – Average price per user ID is $30, so you divide $30 by the churn to get the lifetime value
01:40 – Technically you take the average pay per month
02:00 – Mixpanel can calculate your customer lifetime value