How To Calculate Lifetime Value in Copper CRM | Arithmix

Calculating lifetime value is an important aspect of any business. It helps you understand the value of a customer over the course of their relationship with your company. This information can be used to make informed decisions about marketing, sales, and customer service strategies. In this article, we will explore what lifetime value is, when it is valuable to calculate it, and how to calculate it using Copper CRM.

Lifetime value is the total amount of revenue a customer will generate for your business over the course of their relationship with your company. This includes all purchases, subscriptions, and any other revenue streams that the customer generates. By calculating lifetime value, you can determine the value of a customer to your business and make informed decisions about how to allocate resources to retain and acquire customers.

There are a few factors that can impact lifetime value, including the frequency of purchases, the average order value, and the length of the customer relationship. By understanding these factors, you can identify opportunities to increase lifetime value and improve your overall business performance.

When Is It Valuable To Calculate Lifetime Value?

Calculating lifetime value is valuable for any business that wants to improve customer retention and acquisition. By understanding the value of a customer over time, you can make informed decisions about how to allocate resources to retain and acquire customers. This can help you improve customer satisfaction, increase revenue, and grow your business.

Calculating lifetime value is particularly valuable for businesses that have a subscription-based model or rely on repeat purchases. By understanding the value of a customer over time, you can identify opportunities to increase revenue and improve customer retention.

How to Calculate Lifetime Value Using Copper CRM

1. Identify the average order value for your business. This is the average amount of revenue generated by each customer order.
2. Determine the average number of orders per customer. This is the average number of times a customer will purchase from your business over the course of their relationship with your company.
3. Calculate the average customer lifespan. This is the average length of time a customer will remain active with your business.
4. Multiply the average order value by the average number of orders per customer to determine the average revenue per customer.
5. Multiply the average revenue per customer by the average customer lifespan to determine the lifetime value of a customer.

By following these steps, you can calculate the lifetime value of a customer using Copper CRM. This information can be used to make informed decisions about marketing, sales, and customer service strategies.

Conclusion

Calculating lifetime value is an important aspect of any business. It helps you understand the value of a customer over the course of their relationship with your company. By using Copper CRM, you can easily calculate lifetime value and make informed decisions about how to allocate resources to retain and acquire customers. By understanding the value of a customer over time, you can improve customer satisfaction, increase revenue, and grow your business.

How Do You Calculate Lifetime Value in Copper CRM

Copper CRM itself isn�t naturally geared towards letting you calculate complex metrics like Lifetime Value. As an alternative, teams typically use products like Arithmix to import data from Copper CRM and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that�s powerful yet easy to use. With Arithmix you can import data from systems like Copper CRM, combine it with data from other systems, and create calculations like Lifetime Value.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.