Quick CLV Calculator

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Sales Folks! Get loved by your deals approval desk and your compensation analysts. This APP is best viewed on a tablet if you are computing CLV for all 3 prospects.

When prospecting, it is very important to focus on customers that generate higher Customer Lifetime Values (CLVs). What is a CLV? A CLV is the amount of recurring revenues less recurring direct service costs and one time fixed costs totaled over the contract tenure of the customer. A CLV gives a good idea of how financially attractive the customer is to your company. Focusing on high CLV customers will stand you in good stead as your company's compensation analysts and deals desk will love you and pay you more for acquiring or retaining customers with high CLV to your company. A high CLV customer translates to higher bottom line and a higher revenue run rate for the company . We have now enhanced the APP by adding a CLV to CAC Ratio box. CAC or customer acquisition costs is the amount of dollars you spend to acquire a one widget from the customer. Deals with a CLV to CAC ratio greater than 3 is considered ideal. Deals with a ratio less than 1 should be avoided. This FREE calculator is designed to let you capture data for up to 3 prospective customers and then compute their CLVs so you can zero in on the more valuable prospects. This APP was created by Shiva Badruswamy of MobileForce Inc. Visit us at www.digitalmobileforce.com for more information about the APP and a link to a blog that further educates you on the challenges facing the digital era sales force.

The future versions of the APP will be designed to compute other deal yardsticks such as deal margins and payback period. These yardsticks are important to know when negotiating a deal as your likelihood of getting approval from your deals desk hinges on crossing these hurdle rates.

As always feedback and suggestions for improvement welcome on our website at www.digitalmobileforce.com.

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