MBM App 1.15
Customer Lifetime Value
Calculate and visualize customer lifetime value based on retention rates and cash flow projections
Customer Lifetime Value Analysis
| Period | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| Cash Flow ($) | |||||||
| Retention × PV Factor | 1.000 | 0.970 | 0.756 | 0.658 | 0.672 | 0.497 | 0.432 |
| Present Value (Cash Flow) | -$51.00 | $29.10 | $31.75 | $28.95 | $32.93 | $27.34 | $25.92 |
| Net Present Value | $99.07 | ||||||
Customer Life (Periods)
Customer Retention
80.0%
Retention Rate
Cash Flow Analysis
Customer Life: 5 years | CLV: $99.07
Periods 0–5 included in CLV calculation | Periods 6–6 excluded (shown faded)
Note: "Retention × PV Factor" = retention probability × discount factor (10% rate). To replicate in Excel, multiply each year's retention rate by 1/(1.10)^t.
Current CLV
$99.07
5-year customer life
Customer Retention
80.0%
Retention Rate
Baseline
This scenario serves as the comparison baseline
Key Insight
With a customer life of 5 years, CLV = $99.07. This serves as the baseline for comparison with other customer life scenarios.