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Bright01
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Customer Value Analytics

I have searched the EE Database and cannot find what I'm looking for.  I am searching for an Excel spreadsheet or formulas that calculate several different Customer Value KPIs.  

Customer Life-TIme-Value
Customer Churn rate
Customer Defection or Retention

If you have any ideas on either formulas or samples; it would be much appreciated.

Thank you in advance,

B.
Microsoft ExcelMath / ScienceAlgorithms

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Bright01

8/22/2022 - Mon
Muhammad Khan

Bright01

ASKER
Aiklamha,

Thank you for the quick response.  I have the definition for CLV; what I was looking for is someone who either knows how to or has already put into an Excel spreadsheet the mathmatical formula.  I would do it myself but math wasn't one of my strong points in College.

Thanks,

B.
ASKER CERTIFIED SOLUTION
pmasotta

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Bright01

ASKER
Aiklamha,

Does that mean that creating LTV is simply a function of NPV for cash flow or does the equation expressed in the article you sent me hint at more?

B.
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William Peck
Bright01

ASKER
Here is a sample based on the article.  What is not clear to me is the math formula for calculating LTV.  How does "churn" rate come into play?  Any improvements you can make to this?

Thank you,

B.
Calculation-for-LTV-Sample.xlsm
SOLUTION
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Muhammad Khan

and yes to your first question..
Bright01

ASKER
aiklamha,

If you take a look at the model I sent you will see an attempt to build out the math to create a LTV model.  Is the NPV representative of LTV or did I miss something?  How would I add "churn" into the model?  Any improvement ideas?

Thank you,

B.
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Bright01

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Thanks guys!  You got me on the right track.......

B.