CLV, or customer lifetime value, is a metric that businesses use to measure the profitability of their customers. To calculate CLV in Excel, you need to first identify your business's average profit per sale and then multiply that number by the number of years that a customer is expected to continue making purchases from your company.
The formula for calculating CLV in Excel is: Average Profit per Sale * Number of Years a Customer is Expected to Continue Making Purchases
For example, let's say that your business has an average profit per sale of $100 and customers are expected to continue making purchases for an average of 10 years. Therefore, the CLV for each customer would be $1,000.
You can use this information to make decisions about how much to spend on marketing and advertising efforts aimed at acquiring new customers and retaining existing ones. If your company has a high CLV, it means that each customer is worth more money to your business over time and it may be worth investing more heavily in acquiring and keeping them.