Free tool · 5 minutes · Customer Value & Retention Opportunity Model

What is your customer actually worth after the first purchase?

Acquisition is usually judged on the first order. Most of the commercial value arrives later. This module models customer gross profit, how quickly acquisition repays, and what a modest improvement in repeat, renewal or expansion would be worth on your own numbers.

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Which best describes the business?

This changes the questions and the way the read is constructed. Nothing else.

What this gives you

  • Gross profit per order or first-year contract
  • Annual and retention-implied lifetime gross profit per customer
  • Acquisition payback and year-one headroom, where cost is supplied
  • Modelled value of small improvements in second purchase, frequency, renewal or expansion
  • A read on how dependent the business is on retention working

How the read is built

  • Customer gross profit is calculated from your order or contract value, margin and repeat behaviour. Lifetime value is retention-implied, using a simple one-over-churn style calculation and labelled as such.
  • Every scenario states its assumption, including that additional orders carry today's margin with no extra discounting.
  • Where acquisition cost is missing, payback and headroom are shown as unavailable rather than estimated.

What it cannot tell you

  • This is not a cohort-modelled LTV. Cohort behaviour, seasonality and product mix all move real lifetime value.
  • Improvements in retention are modelled, not predicted. The module does not know what it would cost you to achieve them.
  • No sector retention benchmarks are applied.

Customer value — common questions

How is lifetime value calculated?
Annual customer gross profit is extended using your repeat or renewal rate. It is a transparent retention-implied estimate, not a predictive model, and the formula is shown next to the number.
What if acquisition cost is hard to pin down?
Leave it blank. You still get customer gross profit and retention scenarios, and the module will tell you that payback could not be read.
Does this replace a retention strategy?
No. It tells you whether retention is where the commercial value sits. What to do about it is diagnostic work.

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