Money & shopping
Customer value scenario
Estimate gross customer profit from order value, frequency and lifetime.
A clear answer. Here’s how.
Modelled lifetime revenue = order revenue × orders per month × lifetime months. Gross profit multiplies by the supplied gross margin; subtracting acquisition cost gives contribution after acquisition only. Constant-behaviour scenario, without discounting, churn estimation, overheads or a predictive customer model.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Average order revenue
- 40
- Orders per month
- 0.5
- Assumed customer lifetime (months)
- 24
- Gross margin (%)
- 40
- Acquisition cost per customer
- 50
Example result
- Modelled lifetime revenue
- 480.00
- Modelled lifetime gross profit
- 192.00
- After acquisition cost only
- 142.00