Customer Lifetime Value Estimation Tool

Looking for an easy way to estimate customer lifetime value?

You’ve come to the right place.  In addition to calculating the lifetime customer value the Genroe Return on Retention Estimator also calculates impact of changes in customer attrition rates.  This tool has been used in University Business schools to calculate the value of customer retention.

What is your Lifetime Customer Value?

When you are making decisions on when and where to invest your hard earned marketing business most people look to customer acquisition numbers.  But that is only part of the story.  Long term you also need to know the lifetime customer value that each of your acquisitions will drive for the business.

With that additional information you can re-segment and review your approaches to maximise the long term return on investment for your marketing funds.

Calculating Customer acquisition value is easy but customer lifetime value is harder

Estimating the return on investment for simple acquisition style campaigns is quite straightforward. However, many organisations are not able to determine the incremental customer lifetime value that is generated for improvements in customer retention.

You  know that it is many time low in cost to re-sell to an existing customer than it is to sell to a new customer.  But without a good understanding of lifetime customer value you don’t know how many times or what ROI will be generated..

RORE will calculate the customer lifetime value and you can use it as a “what-if” calculator.  If you tell it the estimated imporviment in customer retention rate that you expect it will tell you the change in lifetime customer value that will occur.  You can then easily estimate the ROI of your project.

So RORE will help you to estimate the life time customer value that you will drive from changes in your customer retention (or attrition) rates.

This is not a toy

RORE is not a toy but an accurate estimation tool that is based on one of our advanced customer retention ROI models.  All that we have done is reduce the number of variables to make it easier to use.

It is based on MS Excel but contains no macros; so you must have MS Excel to use it.

Please note that the RORE is provided on an as is basis and Genroe accept no liability for its use in any way whatsoever.