7. CLV (Customer Lifetime Value) Your CLV is your ‘customer lifetime value’. This is the most important metric to track in terms of making money and it’s another one you’re going to have to calculate yourself by looking at a range of other metrics from your panel. First, look at the amount you are charging for your product and more importantly how much you make for each sale. What is your profit margin for each unit you shift? This will be the RRP minus your ‘COGs’ (cost of goods sold). And while you’re at it, don’t forget to look at any discounts you might offer sometimes or the cost of delivery etc. From here, you can then look at your number of unique visitors and the total number of sales. Roughly divide the total profit per year by the number of visitors and you have a rough average value for each of your customers. Customer Lifetime Value really measures the value of all your leads and visits. In other words, buying customers are worth X amount of money to you and visitors who never buy from you are worth 0. But if you take the average amount, then you can work out a value for each visitor to your site, which we call CLV.
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