Customer Net Present Value (NPV) Marketing Calculator
Use this Customer NPV (Net Present Value) Marketing 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.
Enter your values (cost of capital, average sale, gross profit %, average purchases made per year, and the average customer life in years) in the cells below. Tab to move to the next cell.
You can do what-if-analysis by changing the different values to see the impact these changes have on your overall campaign's performance.