In Episode #382, Eric and Neil discuss how to determine customer lifetime value. Tune in to learn the simplest formula you can use to calculate your customer lifetime value. Eric and Neil also drop several online tools that simplify the process and will do the math for you. Time Stamped Show Notes: 
00:27 – Today’s topic: How to Determine Customer Lifetime Value
00:38 – There are multiple ways to determine customer lifetime value
00:52 – Eric shares an example of a SaaS company’s customer lifetime value 
00:55 – Neil’s Crazy Egg has a churn of 10%, which is the number of customers who stopped using the product
01:08 – Average price per user ID is $30, so you divide $30 by the churn to get the lifetime value
01:40 – Technically you take the average pay per month
02:00 – Mixpanel can calculate your customer lifetime value
02:10 – RJMetrics can do it for you, too
02:21 – There’s a formula on Kissmetrics that you can copy to calculate the customer lifetime value
02:31 – Eric has tried different formulas and the one on Shopify’s blog is one worth checking out
02:50 – You can do the formula yourself, but there will always be flaws
03:00 – Marketing School is giving away a free 1 year subscription of Crazy Egg which is a visual analytics tool 
03:50 – Go to SingleGrain.com/giveaway for multiple entries
03:59 – That’s it for today’s episode! 3 Key Points: 
There are several ways to calculate customer lifetime value, just find the one that suits you and your needs best.
Consider using a tool for a more accurate calculation of lifetime value.
You can create and execute the formula yourself, but don’t expect it to be error-free.

Leave some feedback:
What should we talk about next? Please let us know in the comments below.
Did you enjoy this episode? If so, please leave a short review.

Connect with us:
NeilPatel.com
Quick Sprout
Growth Everywhere
Single Grain
Twitter @neilpatel
Twitter @ericosiu



Learn more about your ad choices. Visit megaphone.fm/adchoices

In Episode #382, Eric and Neil discuss how to determine customer lifetime value. Tune in to learn the simplest formula you can use to calculate your customer lifetime value. Eric and Neil also drop several online tools that simplify the process and will do the math for you. Time Stamped Show Notes: <ul> <li>00:27 – Today’s topic: How to Determine Customer Lifetime Value
</li> <li>00:38 – There are multiple ways to determine customer lifetime value</li> <li>00:52 – Eric shares an example of a SaaS company’s customer lifetime value <ul> <li>00:55 – Neil’s Crazy Egg has a churn of 10%, which is the number of customers who stopped using the product</li> <li>01:08 – Average price per user ID is $30, so you divide $30 by the churn to get the lifetime value</li> <li>01:40 – Technically you take the average pay per month</li> </ul> </li> <li>02:00 – <a href="https://mixpanel.com">Mixpanel</a> can calculate your customer lifetime value</li> <li>02:10 – <a href="https://rjmetrics.com">RJMetrics</a> can do it for you, too</li> <li>02:21 – There’s a formula on <a href="https://blog.kissmetrics.com/how-to-calculate-lifetime-value/">Kissmetrics</a> that you can copy to calculate the customer lifetime value</li> <li>02:31 – Eric has tried different formulas and the one on <a href="https://www.shopify.com/blog/customer-lifetime-value">Shopify’s blog</a> is one worth checking out</li> <li>02:50 – You can do the formula yourself, but there will always be flaws</li> <li>03:00 – <a href="http://marketingschool.io/">Marketing School</a> is giving away a free 1 year subscription of <a href="https://www.crazyegg.com/">Crazy Egg</a> which is a visual analytics tool <ul> <li>03:50 – Go to <a href="http://singlegrain.com/giveaway">SingleGrain.com/giveaway</a> for multiple entries</li> </ul> </li> <li>03:59 – That’s it for today’s episode!</li> </ul> 3 Key Points: <ol> <li>There are several ways to calculate customer lifetime value, just find the one that suits you and your needs best.</li> <li>Consider using a tool for a more accurate calculation of lifetime value.</li> <li>You can create and execute the formula yourself, but don’t expect it to be error-free.</li> </ol> Leave some feedback: <ul> <li>What should we talk about next? Please let us know in the comments below.</li> <li>Did you enjoy this episode? If so, please leave a short review.</li> </ul> Connect with us: <ul> <li><a href="http://neilpatel.com/">NeilPatel.com</a></li> <li><a href="https://www.quicksprout.com/">Quick Sprout</a></li> <li><a href="http://growtheverywhere.com/">Growth Everywhere</a></li> <li><a href="http://www.singlegrain.com/">Single Grain</a></li> <li><a href="https://twitter.com/neilpatel">Twitter @neilpatel</a></li> <li><a href="https://twitter.com/ericosiu">Twitter @ericosiu</a></li> </ul> Learn more about your ad choices. Visit <a href="https://megaphone.fm/adchoices">megaphone.fm/adchoices</a>

Neil Patel and Eric Siu bring you daily ACTIONABLE digital marketing lessons that they've learned through years of being in the trenches. Whether you have a new website or you're an established business, you'll learn the latest SEO, content marketing, social media, email marketing, conversion optimization and general online marketing strategies that work today from people that actually practice marketing and operate businesses.
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Marketing School - Digital Marketing and Online Marketing Tips

In Episode #382, Eric and Neil discuss how to determine customer lifetime value. Tune in to learn the simplest formula you can use to calculate your customer lifetime value. Eric and Neil also drop several online tools that simplify the process and...

How to Determine Customer Lifetime Value | Ep. #382

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