Customer Lifetime Value Calculator for SaaS Startups

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1	Need help scaling your SaaS? Let’s talk: www.danmartell.com/call
2		Customer Lifetime Value Calculator: Follow the Four Steps and Input Your CLV Data
3		INSTRUCTIONS: Complete the GOLD cells only
4		Blue, grey and yellow cells should NOT be typed over
5		For further information on use of the CLV calculator, email Geoff Fripp					geoff@marketingstudyguide.com				or visit	www.clv-calculator.com
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7		STEP ONE = ENTER PROMOTIONAL EXPENDITURE PER NEW CUSTOMER								STEP TWO = ENTER DISCOUNT RATE
8		Total Spend on New Customer Acquisition (Promotion and other elements)			Note: If Average Acquisition Cost is already know, then enter it as the Total Spend and set the Number of New Customers to 1.					Discounted Cash Flow Rate				10%
9		Number of New Customers Acquired								This is an optional step - more important with longer customer lifetimes - if you don't want to use discounted cash flows, leave setting at 0%
10		New Customer Acquisition Cost (automatically calculated from above)		0
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12		STEP THREE = ENTER REVENUE/COSTS (revenue and three sets of costs below)	IMPORTANT NOTE: This revenue/cost section MUST be completed on a PER individual customer basis											10 year Total
13			Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10	Year 11 (and ongoing)	10 year Total
14		Average Customer Revenue pa (IF RETAINED)	100	100	100	100	100	100	100	100	100	200	200	1,100
15		Average Customer Product Cost	50	50	50	50	50	50	50	50	50	50	50	500
16		Average GROSS Profit Contribution	50	50	50	50	50	50	50	50	50	150	150	600
17		Up-selling and Retention Costs per RETAINED Customer pa	10	10	10	10	10	10	10	10	10	10	10	100
18		WOM Acquisition Cost Savings (enter as a negative cost)	-5	-5	-5	-5	-5	-5	-5	-5	-5	-5	-5	-50
19		Average NET Profit Contribution PER CUSTOMER	45	45	45	45	45	45	45	45	45	145	145	550
20		STEP FOUR = ENTER EXPECTED RETENTION RATE % (for Year 2 onwards)	N/A	75%	75%	75%	75%	75%	75%	75%	75%	75%	75%	N/A
21		% of total customers retained (used as probability of cash flow)	100.0%	75.0%	56.3%	42.2%	31.6%	23.7%	17.8%	13.3%	10.0%	7.5%	N/A	N/A
22		Average NET Profit Contribution OF RETAINED CUSTOMERS ONLY before acquisition cost	45	34	25	19	14	11	8	6	5	11	N/A	210
23		DISCOUNTED Average NET Profit Contribution PER RETAINED CUSTOMER before acquisition cost	41	28	19	13	9	6	4	3	2	4	N/A	138
24												NOTE: Totals may also include any customer profits from Years 11 to 50. If none required, set Year 11 to zero.
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26		OUTPUT SECTION				For further information on the metrics please visit:				www.clv-calculator.com
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29		CLV = Net Present Value of Customer's Profit Contribution		138		% ROMI on customer acquisition cost (without discounting)					#DIV/0!
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31		Average Customer Lifetime (in years)		4.0		% ROMI on customer acquisition cost (WITH discounting)					#DIV/0!
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33		Internal rate of return (IRR) %		N/A		Payback (in Years) on acquistion cost (taking into account % retention rate)					0.0
34						NOTE: If payback is not achieved, Years to Payback will be listed as "0.0" above
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