Customer Lifetime Value Excel Template for Enterprise Businesses 📈
You don’t want to spend more time acquiring a customer than the total return you have on that customer.
So, to understand the health of your SaaS business, you should measure your Customer Lifetime Value (CLTV).
Its most common formula is as follows:
(Annual recurring revenue – average cost of service) / (% churn + WACC – subscription increase)
To help you get started, here is a CLTV template. It includes sensitivity tables to help you understand how changes in variables affect the CLTV formula.
You will need the following inputs:
✅ ARPA = average recurring revenue (per account)
✅ ACS = average cost of service (per account)
✅ WACC = weighted average cost of capital
✅ Dollar churn percentage
✅ Average dollar percentage growth per customer
✅ ACS = average cost of service (per account)
✅ WACC = weighted average cost of capital
✅ Dollar churn percentage
✅ Average dollar percentage growth per customer
But what makes a good CLTV?
That is hard to say as it depends on the nature of your business. But your best bet is to compare your CLTV to your customer acquisition costs (CAC).
Want access to the full template? Comment below and I’ll send it to you ASAP. Please send a connection request if we are not already connected to get the resource.
Germain UX – Improve Sales Processes and UX in Real-Time
Credit: Ben Murray
