May 30, 2024
Customer value calculation

Customer value assessment: how to calculate customer value?

customer value calculation

Customer value is important for any business. A good customer value assessment allows a company to better align itself with a customer’s wants and needs. In the long run, this will also lead to stronger customer loyalty and higher customer satisfaction. In this blog, we are going to show you how to calculate customer value and how this can possibly be made easier.


How to calculate customer value


There are several ways how you can calculate customer value, below we explain to you the most important ones:


CLV (customer lifetime value)

How much will a customer cost you on average? Customer lifetime value allows you to calculate how much a customer will cost you on average. It can also calculate how much a customer will bring your company. The CLV is calculated by doing the average customer time times the customer value, then subtracting the cost per customer acquisition. This formula is very important for determining customer value.


NPS (net promoter score)

The net promoter score calculates how willing a customer is to recommend your company to other people. This is often indicated on a scale of one to ten, with one being the lowest and ten being the highest. This is good not only for customer value assessment, but also for insights into customer loyalty. The NPS is calculated by doing the number of promoters minus the number of detractors.


CSAT (Customer satisfaction scores)

The customer satisfaction score can be used to measure how satisfied customers are with your products or services. There is no formula for the CSAT, you may apply your own way here that works best for your business. You can research customer satisfaction through surveys, questionnaires or interviews with customers focusing on their experiences.


Customer retention

The percentage of returning customers is important for determining customer value, with a tricky word we call this customer retention. Higher customer retention results in better customer loyalty, as well as significantly higher customer satisfaction. To calculate this, we need to look at the percentage of customers who make a repeat purchase. You can read more about customer retention in this blog

calculate customer value

Strategies to make it easier to calculate customer value

There are a number of ways to make it easier to calculate customer value. After all, a higher customer value ensures turnover and ultimately profit. Below are a number of strategies that can help your company to calculate customer value more easily.


Your customers are very important to your business. So it is important to focus on your customers’ wants, needs and expectations. Companies that put their customers first have an easier time determining customer value and customer loyalty. Make sure you always approach your customers in a customer-centric way.

Personalized offers and promotions

If customers receive a personalized gift from your company on their birthday, they will feel much more engaged and valued by your company. You need to give customers the idea that they are not just another number within your customer data. By using customer data and the right analytics tools, your company can respond to each customer’s individual needs and preferences. This will naturally lead to an easier way to calculate customer value.

Loyalty program

With loyalty programs, you can reward your loyal customers for staying loyal to your business and their purchases. Consider, for example, the McDonalds loyalty program. If you keep saving enough points, you’ll get a free burger. A good reason for customers to come back.

Customer service

Good customer service ensures that customer problems are answered, of course, but it also makes for easier customer appreciation. Positive word of mouth comes from friendly and prompt customer service.

Continuous improvement and innovation

Of course, your business must also keep up with the times. Constantly improving and innovating products or services is important for customer value. Use customer feedback to always tailor your offerings to your customers.

Brand experience for customer value

Provide a unique brand experience. This makes it easier to determine customer value. When it comes to brand experience, it is important to emotionally involve customers in your company. Your business can do this by creating lasting memories and ensuring enough interactions.


Calculating the role of technology in customer value

The development of technology has contributed to making it easier to calculate customer value. Consider the ability to effectively collect and analyze data to better understand and help customers. We show you below a number of technological developments:

Customer relationship management (CRM) system

A CRM system should not be missing in your company. Collecting, analyzing, managing, and optimizing customer data can all be done with this system. To calculate the customer value, a CRM system is the solution.



Artificial intelligence is a topic you’ve heard a lot about lately. Chatbots and virtual assistants can speak to your customers and provide better customer service. AI can also answer emails from customers with correct information. Make sure that this development is taken into account within your company to calculate customer value.

Social media

On social media, your customers will give their opinion about your company. The feedback can be used to improve products or services, or it can be used to easily calculate customer value.

Phone development

Because everyone owns a smartphone these days, your customers can more easily communicate with your company, use loyalty programs and pay faster. If your company uses this in a good way, the customer value will certainly increase and be calculated more easily.

Hopefully, you now know how to calculate customer value and why calculating customer value is so important. Good luck!