Use this Customer NPV (Net Present Value) Calculator to calculate the "Net Present Value" of a customer based on cost of capital, their profitability, purchase history and lifespan (how long they are a customer). This is a method of determining the true value of that customer, and based on that value, whether you should be making future investments in trying to retain that customer. See definitions below for additional clarification.
You can enter your values (cost of capital, average sale, gross profit %, average purchases made per year, and the average customer life in years) manually by double clicking in the box and entering the value. Or, you can use the up/down arrow which appears when you hover over the box. Drag the up/down arrow up or down to enter or change values. You can do what-if-analysis by changing the different values to see the impact these changes have on your overall campaign's performance.
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Note: We also build custom marketing tools and calculators. For more information about this and other services, please contact us.