How To Calculate Lifetime Value in Deltek Vision | Arithmix
Learn how to calculate the lifetime value of your clients in Deltek Vision with our step-by-step guide. Maximize your profitability and make informed business decisions with this essential metric.
Calculating lifetime value is an important aspect of any business. It helps you understand the value of a customer over their entire relationship with your company. This information can help you make informed decisions about how much you should be spending to acquire new customers, how to retain existing customers, and how to maximize the value of each customer relationship.
What Is Lifetime Value?
Lifetime value is the total value that a customer brings to your business over the course of their relationship with you. This includes all purchases they make, as well as any referrals or recommendations they provide to others. By calculating lifetime value, you can determine the true value of each customer to your business.
For example, if a customer makes a $100 purchase from your business every month for 5 years, their lifetime value would be $6,000. However, if that same customer also refers 5 new customers to your business, their lifetime value would be even higher.
When Is It Valuable To Calculate Lifetime Value?
Calculating lifetime value is valuable for any business, regardless of size or industry. It can help you make informed decisions about how much you should be spending on marketing and advertising, as well as how to prioritize customer retention efforts.
For example, if you know that your average customer has a lifetime value of $5,000, you can determine how much you should be willing to spend to acquire a new customer. If your cost per acquisition is $1,000, but your lifetime value is $5,000, then it makes sense to invest in acquiring new customers.
Additionally, calculating lifetime value can help you identify which customers are most valuable to your business. By focusing on retaining these high-value customers, you can maximize the value of each customer relationship and increase overall revenue.
In conclusion, calculating lifetime value is an important aspect of any business. It can help you make informed decisions about how to allocate resources and prioritize customer retention efforts. By understanding the true value of each customer relationship, you can maximize revenue and build a strong, loyal customer base.
How Do You Calculate Lifetime Value in Deltek Vision
Deltek Vision 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 Deltek Vision 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 Deltek Vision, 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.
Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.
Calculating Lifetime Value in Arithmix
Calculating metrics like Lifetime Value is simple in Arithmix. Once you've created your free account, you’ll be able to import your Deltek Vision data, and use it to create natural language formulas for metrics like Lifetime Value.
Arithmix is designed to give you the power to build any calculations you want on top of your Deltek Vision data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.Use Arithmix free