Below is the answer and explanation for how do you calculate customer lifetime value?
How do you calculate customer lifetime value?
- You’ll need to audit the expenses of all of your customer success efforts. Once you add all expenses into one sum, you can divide that value by your total number of customers to get your average customer lifetime value.
- Multiply your average purchase value by your average purchase frequency rate. Then take that value and multiply it by your average customer lifetime value. ✅
- Divide the number of customers who renewed their subscription by the number of users who are up for renewal. Then, multiply your result by 100 to determine your customer lifetime value
- Multiply your total number of active customers by your average revenue per user.
Correct answer
Multiply your average purchase value by your average purchase frequency rate. Then take that value and multiply it by your average customer lifetime value. ✅
The above answer is related to HubSpot reporting certification exam. You can find all the updated questions and answers related to HubSpot reporting certificate exam on the “HubSpot reporting certification” page. If you find any error or update in questions or answers, then do comment below and let us know. We will update it as soon as possible.
Learn more about HubSpot reporting certificate exam exam: https://academy.hubspot.com/courses/hubspot-reporting
