# How To Calculate Lifetime Value in JD Edwards Enterprise One | Arithmix

Learn how to calculate lifetime value in JD Edwards Enterprise One with our step-by-step guide. Maximize your customer retention and profitability by understanding the true value of each customer over their lifetime.

Calculating lifetime value is an important metric for any business looking to understand the value of its customers over time. While there are many ways to calculate lifetime value, the process can be particularly valuable when using JD Edwards Enterprise One, a powerful enterprise resource planning software that can help businesses manage their finances, inventory, and customer relationships.

Lifetime value is a metric that measures the total value of a customer to a business over the course of their relationship. This includes all purchases made by the customer, as well as any referrals or other benefits they may bring to the business. By calculating lifetime value, businesses can better understand the value of their customer base and make informed decisions about how to allocate resources and prioritize customer relationships.

There are many factors that can impact lifetime value, including the frequency and size of purchases, the length of the customer relationship, and the overall profitability of the customer. By analyzing these factors, businesses can gain a deeper understanding of their customer base and make strategic decisions about how to grow and maintain their customer relationships over time.

## When Is It Valuable To Calculate Lifetime Value?

Calculating lifetime value can be valuable for businesses in a variety of situations. For example, businesses may want to calculate lifetime value when they are considering investing in new marketing or customer acquisition strategies, as this can help them determine the potential return on investment for these initiatives.

Similarly, businesses may want to calculate lifetime value when they are considering changes to their pricing or product offerings, as this can help them understand how these changes may impact their overall customer base and profitability.

Ultimately, calculating lifetime value can be a valuable tool for any business looking to better understand the value of its customers over time. By taking the time to analyze this metric, businesses can make more informed decisions about how to allocate resources and prioritize customer relationships, ultimately leading to greater success and profitability over the long term.

## How Do You Calculate Lifetime Value in JD Edwards Enterprise One

JD Edwards Enterprise One 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 JD Edwards Enterprise One 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 JD Edwards Enterprise One, 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.