--- title: Find Your Customer Lifetime Value description: Customer Lifetime Value (CLV) can help jewelry stores make tough marketing decision. We cover the importance of CLV, how to calculate it, a free downloadable worksheet to calculate yours in minutes, and practical advice to grow your jewelry sales with CLV. image: https://blog.gemfind.com/hubfs/GF-WebTraffic-(1).gif --- | | | --- | | ![](https://blog.gemfind.com/blog/Images/spacer.gif) | # Find Your Customer Lifetime Value Feb 5, 2019 2:53:53 PM [GemFind](https://blog.gemfind.com/blog/author/gemfind) [0 Comments](https://blog.gemfind.com/blog/find-your-customer-lifetime-value?hsLang=en-us#comments-listing) Share on: - [mailto:?body=https://blog.gemfind.com/blog/find-your-customer-lifetime-value](mailto:?body=https://blog.gemfind.com/blog/find-your-customer-lifetime-value)                                                  ![GF-WebTraffic-(1)](https://blog.gemfind.com/hs-fs/hubfs/GF-WebTraffic-(1).gif?width=800&name=GF-WebTraffic-(1).gif)   ### **Your Most Important Marketing Metric**   One of the first questions we ask our clients is “Do you know how much you want to spend on to acquire a new customer?” Most people look at us like we’re crazy. Others try to calculate how much profit they can make from a single transaction. They then come up with the lowest amount they are willing to spend to get a customer through the door. This is not the best strategy. If we want to figure out how much we should spend on our marketing, we first need one important metric: Customer Lifetime Value. #### **What is Customer Lifetime Value?** Customer Lifetime Value (CLV) is the total revenue your store can expect from a single customer for the entire relationship with that customer. Businesses who understand the importance of this metric can adjust their marketing strategy and find ways to increase CLV. This metric will influence most marketing decisions in your business. If you have a specific revenue goal, and know your CLV,  then you’ll know exactly how many customers you should acquire to reach your goal. The idea is to earn and retain long-time customers and CLV allows you to see the long-term return on your marketing investment. Once you know your CLV you can also start identifying the type of customers that bring in a higher CLV than average.  You’ll see how much you need to spend to get the right customers rather than blindly spending your marketing budget and hoping everyone will do business with you. #### **![Customer Value](https://blog.gemfind.com/hs-fs/hubfs/GF_CustValue.jpg?width=600&name=GF_CustValue.jpg)** #### **How to find your Customer Lifetime Value?** [The easy way to find your CLV is to download our Free CLV Excel Worksheet here](https://blog.gemfind.com/blog/find-your-customer-lifetime-value#clvform) There are several ways to calculate CLV but we’ll give you a simple one we found. Here’s a breakdown of how to calculate it yourself. You’ll need the information below, and you can usually get this from your accounting department or most POS systems. ##### **1. Annual Sales Revenue (ASR)?** You should know this number. We’ll be looking at an annual period. Keep this in mind when answering these questions. ##### **2. The number of Annual Sales Transactions (AST)?** How many sales transactions took place in your store? Count only the number transactions and not transactions per customer. We’ll get to transactions per customer in the next question. ##### **3. The average number of Annual Purchases Per Customer (APC)?** What’s the average number of yearly purchases from each customer. ##### **4. Average Customer Lifespan (CL)** How long does your average customer continue to shop from you? ##### **The Calculation** 1. Identify your Average Transaction Amount ** Average Transaction Amount (ATA) =** **Annual Sales Revenue (ASR)  ÷ Annual Sales Transactions (AST)** 2. Now we need to find the average Customer Annual Value (CAV) **Customer Annual Value (CAV) =** **Average Transaction Amount (ATA)  x Annual Purchases Per Customer (APC)** 3. Now we factor in the number of years a customer continues to shop from you to get your CLV. **Customer Lifetime Value (CLV) =** **Customer Annual Value (CAV)  x Average Customer Lifespan (CL)**  Want an easier way? We’ve done the hard work. [Download our Excel Worksheet here for a simple way to find your CLV.](https://blog.gemfind.com/blog/find-your-customer-lifetime-value#clvform) #### **You know your Customer Lifetime Value, now what?** Let’s start by taking a step back and looking at your customers. Can you identify segments or groups that bring in a higher CLV than your average customer? Maybe certain designs, salespeople, promotions, etc. attract a type of clientele that tends to have a higher CLV. Here are some questions that might help you find common traits:Do they tend to shop more often? - Do they purchase more per transaction? - How did most of them find your store? - How do they like to be communicated to (Ex: Email, Phone Call, Text message, social media, etc.)? - Did your most recent marketing campaign bring in more of these types of customers? (We had to sneak that last one in because if the answer is no, give us a call. We can help.) When you start paying attention to your highest value yielding customers, notice what makes them shop from you, and use that message across all of your marketing, then the results will come in. You’ll begin to notice more customers with higher CLV shopping at your store. We can also start applying this metric to see if you’re overpaying on certain marketing campaigns. Take a look at any marketing campaigns you are currently running. How many new customers are you bringing in compared to the cost of running the campaign? Are you spending more on getting one new customer than your average CLV? Are you spending too little on your marketing and losing business to your competition because they're spending more? Always track and measure your marketing efforts. Your CLV is not set in stone. It is always changing based on things we can and can't control. Bad economic times can cause customers to have less spending money and the jewelry industry, as a whole, can see a lower average CLV. This metric should be measured periodically to make sure it is going up and not down. The next step is to work on the things we can control to increase your store’s CLV. **![Happy Customers](https://blog.gemfind.com/hs-fs/hubfs/CLV-blog-image.jpg?width=600&name=CLV-blog-image.jpg)** #### **How do we increase Customer Lifetime Value?** We’re now forced to look at existing customers and think of ways to get customers to shop more often, purchase more per transaction, and stay with us... forever. The best way to do this is to treat the first transaction as the beginning of your journey with that customer. After all, the word “Lifetime” is in Customer Lifetime Value. You must think of ways to make your relationship with each customer last a long time. We can increase CLV by focusing on three major components that make up part of the formula: Average Transaction Amount, Frequency of Purchase and Customer Lifespan. Any increase in these three will automatically lead to a higher CLV. Most store owners focus on getting new customers and not on their existing ones. Here are a few tried-and-true methods to increase your CLV: - Exclusive promotions to loyal customers - Excellent customer service - Handwritten notes, personal emails, or phone calls to customers - Email Marketing - Remarketing ads - Many more As you can see, these are all over the places in terms of types of marketing. And the point is to try something, see if your customers respond, adjust, and repeat. You’ll want to allocate a part of your marketing budget to campaigns that aim to increase your customer lifetime value. Remember to [download your Free GemFind CLV Worksheet](https://blog.gemfind.com/blog/find-your-customer-lifetime-value#clvform)to get your store's CLV in a couple of minutes. #### **Final Thought** Customer Lifetime Value can show you a lot about your business and how to market to your customers. The most important point to keep in mind is that a customer’s value isn’t measured in one sale. The goal is to have customers come back many times over the course of several years. You must invest in each relationship and sometimes this involves spending a little more upfront to earn a customers trust. But that’s ok, because we are all in this for the long run. If you'd like to learn more about how to improve your website performance and traffic, call us at 800-373-4373 or [contact us online](https://www.gemfind.com/contact-3/?hsLang=en-us). We have a variety of [digital marketing packages](https://www.gemfind.com/services/digital-marketing/?hsLang=en-us) to fit your needs.  Share on: - [mailto:?body=https://blog.gemfind.com/blog/find-your-customer-lifetime-value](mailto:?body=https://blog.gemfind.com/blog/find-your-customer-lifetime-value) Tags: [GemFind](https://blog.gemfind.com/blog/tag/gemfind), [GemFind Marketing](https://blog.gemfind.com/blog/tag/gemfind-marketing), [customer service](https://blog.gemfind.com/blog/tag/customer-service), [Marketing strategies](https://blog.gemfind.com/blog/tag/marketing-strategies) #### Related Posts - [A Guide for Optimizing Landing Pages for Your Jewelry Store](https://blog.gemfind.com/blog/optimizing-landing-pages-for-your-jewelry-store?hsLang=en-us) Aug 18, 2024 11:16:25 AM - [The Digital Marketing Tools Jewelry Stores Need to be Using Right Now](https://blog.gemfind.com/blog/the-digital-marketing-tools-jewelry-stores-need-to-be-using-right-now?hsLang=en-us) May 7, 2020 4:40:26 PM - [How Much Should Jewelers Spend on PPC Ads?](https://blog.gemfind.com/blog/how-much-jewelers-spend-on-ppc?hsLang=en-us) Jan 4, 2020 9:57:27 AM ### Download Free CLV Excel Worksheet search... Search ### Recent Posts ### Posts by Tags - [GemFind (49)](https://blog.gemfind.com/blog/tag/gemfind) - [Marketing strategies (47)](https://blog.gemfind.com/blog/tag/marketing-strategies) - [digital marketing campaign (33)](https://blog.gemfind.com/blog/tag/digital-marketing-campaign) - [brand marketing (27)](https://blog.gemfind.com/blog/tag/brand-marketing) - [Digital Marketing (24)](https://blog.gemfind.com/blog/tag/digital-marketing) - [Sales Funnel (24)](https://blog.gemfind.com/blog/tag/sales-funnel) - [social media marketing (22)](https://blog.gemfind.com/blog/tag/social-media-marketing) - [GemFind Marketing (17)](https://blog.gemfind.com/blog/tag/gemfind-marketing) - [Social Media (10)](https://blog.gemfind.com/blog/tag/social-media) - [search engine optimization (9)](https://blog.gemfind.com/blog/tag/search-engine-optimization) - [Email marketing (6)](https://blog.gemfind.com/blog/tag/email-marketing) - [Traditional marketing (6)](https://blog.gemfind.com/blog/tag/traditional-marketing) - [jewelry ecommerce (6)](https://blog.gemfind.com/blog/tag/jewelry-ecommerce) - [Customer Targeting (5)](https://blog.gemfind.com/blog/tag/customer-targeting) - [Jewelry Websites (5)](https://blog.gemfind.com/blog/tag/jewelry-websites) - [Jewelry store blog (5)](https://blog.gemfind.com/blog/tag/jewelry-store-blog) - [SEO for jewelers (5)](https://blog.gemfind.com/blog/tag/seo-for-jewelers) - [Website Facelift (5)](https://blog.gemfind.com/blog/tag/website-facelift) - [google search algorithm (5)](https://blog.gemfind.com/blog/tag/google-search-algorithm) - [jewelry store marketing (5)](https://blog.gemfind.com/blog/tag/jewelry-store-marketing) - [lead generation (5)](https://blog.gemfind.com/blog/tag/lead-generation) - [online reviews (5)](https://blog.gemfind.com/blog/tag/online-reviews) - [#leadgeneration (4)](https://blog.gemfind.com/blog/tag/leadgeneration) - [Email optimization (4)](https://blog.gemfind.com/blog/tag/email-optimization) - [Organic traffic (4)](https://blog.gemfind.com/blog/tag/organic-traffic) - [Website Enhancement (4)](https://blog.gemfind.com/blog/tag/website-enhancement) - [customer service (4)](https://blog.gemfind.com/blog/tag/customer-service) - [digital marketing services (4)](https://blog.gemfind.com/blog/tag/digital-marketing-services) - [facebook for business (4)](https://blog.gemfind.com/blog/tag/facebook-for-business) - [inbound marketing (4)](https://blog.gemfind.com/blog/tag/inbound-marketing) - [millennials buying jewelry (4)](https://blog.gemfind.com/blog/tag/millennials-buying-jewelry) - [search engine marketing (4)](https://blog.gemfind.com/blog/tag/search-engine-marketing) - [sell on instagram (4)](https://blog.gemfind.com/blog/tag/sell-on-instagram) - [seo tips (4)](https://blog.gemfind.com/blog/tag/seo-tips) - [user experience (4)](https://blog.gemfind.com/blog/tag/user-experience) - [website engagement (4)](https://blog.gemfind.com/blog/tag/website-engagement) - [Google My Business (3)](https://blog.gemfind.com/blog/tag/google-my-business) - [Instagram for Your Jewelry Store (3)](https://blog.gemfind.com/blog/tag/instagram-for-your-jewelry-store) - [JewelCloud (3)](https://blog.gemfind.com/blog/tag/jewelcloud) - [Web Design (3)](https://blog.gemfind.com/blog/tag/web-design) - [Website Tools (3)](https://blog.gemfind.com/blog/tag/website-tools) - [Website design (3)](https://blog.gemfind.com/blog/tag/website-design) - [business exposure (3)](https://blog.gemfind.com/blog/tag/business-exposure) - [customer experience (3)](https://blog.gemfind.com/blog/tag/customer-experience) - [digital marketing (3)](https://blog.gemfind.com/blog/tag/digital-marketing-2) - [ecommerce (3)](https://blog.gemfind.com/blog/tag/ecommerce) - [ecommerce websites (3)](https://blog.gemfind.com/blog/tag/ecommerce-websites) - [holiday sales (3)](https://blog.gemfind.com/blog/tag/holiday-sales) - [holidayseason (3)](https://blog.gemfind.com/blog/tag/holidayseason) - [increase online presence (3)](https://blog.gemfind.com/blog/tag/increase-online-presence) - [increase sales (3)](https://blog.gemfind.com/blog/tag/increase-sales) - [jewelry website remarketing (3)](https://blog.gemfind.com/blog/tag/jewelry-website-remarketing) - [landing pages (3)](https://blog.gemfind.com/blog/tag/landing-pages) - [local seo (3)](https://blog.gemfind.com/blog/tag/local-seo) - [manage online reviews (3)](https://blog.gemfind.com/blog/tag/manage-online-reviews) - [marketing for jewelers (3)](https://blog.gemfind.com/blog/tag/marketing-for-jewelers) - [professional photography (3)](https://blog.gemfind.com/blog/tag/professional-photography) - [search ranking (3)](https://blog.gemfind.com/blog/tag/search-ranking) - [seo (3)](https://blog.gemfind.com/blog/tag/seo) - [target customer (3)](https://blog.gemfind.com/blog/tag/target-customer) - [Bridal Jewelry (2)](https://blog.gemfind.com/blog/tag/bridal-jewelry) - [DiamondLink (2)](https://blog.gemfind.com/blog/tag/diamondlink) - [Holiday Season (2)](https://blog.gemfind.com/blog/tag/holiday-season) - [Marketing automation (2)](https://blog.gemfind.com/blog/tag/marketing-automation) - [PPC (2)](https://blog.gemfind.com/blog/tag/ppc) - [Photography (2)](https://blog.gemfind.com/blog/tag/photography) - [RingBuilder (2)](https://blog.gemfind.com/blog/tag/ringbuilder) - [Social Marketing (2)](https://blog.gemfind.com/blog/tag/social-marketing) - [Subject Lines (2)](https://blog.gemfind.com/blog/tag/subject-lines) - [buyer's journey (2)](https://blog.gemfind.com/blog/tag/buyers-journey) - [call to action (2)](https://blog.gemfind.com/blog/tag/call-to-action) - [content creation (2)](https://blog.gemfind.com/blog/tag/content-creation) - [conversions (2)](https://blog.gemfind.com/blog/tag/conversions) - [facebook ads (2)](https://blog.gemfind.com/blog/tag/facebook-ads) - [facebook advertising (2)](https://blog.gemfind.com/blog/tag/facebook-advertising) - [google analytics (2)](https://blog.gemfind.com/blog/tag/google-analytics) - [increase engagement (2)](https://blog.gemfind.com/blog/tag/increase-engagement) - [instagram (2)](https://blog.gemfind.com/blog/tag/instagram) - [instagram stories (2)](https://blog.gemfind.com/blog/tag/instagram-stories) - [localization (2)](https://blog.gemfind.com/blog/tag/localization) - [marketing (2)](https://blog.gemfind.com/blog/tag/marketing) - [marketing channels (2)](https://blog.gemfind.com/blog/tag/marketing-channels) - [online customer satisfaction (2)](https://blog.gemfind.com/blog/tag/online-customer-satisfaction) - [online jewelry tools (2)](https://blog.gemfind.com/blog/tag/online-jewelry-tools) - [online marketing (2)](https://blog.gemfind.com/blog/tag/online-marketing-2) - [online marketing for jewelry (2)](https://blog.gemfind.com/blog/tag/online-marketing-for-jewelry) - [remarketing (2)](https://blog.gemfind.com/blog/tag/remarketing) - [reputation management (2)](https://blog.gemfind.com/blog/tag/reputation-management) - [sales through your blogs (2)](https://blog.gemfind.com/blog/tag/sales-through-your-blogs) - [sell jewelry online (2)](https://blog.gemfind.com/blog/tag/sell-jewelry-online) - [target audience (2)](https://blog.gemfind.com/blog/tag/target-audience) - [Blog (1)](https://blog.gemfind.com/blog/tag/blog) - [Cart Abandonment (1)](https://blog.gemfind.com/blog/tag/cart-abandonment) - [Co-Op Advertising (1)](https://blog.gemfind.com/blog/tag/co-op-advertising) - [Content (1)](https://blog.gemfind.com/blog/tag/content) - [De Beers (1)](https://blog.gemfind.com/blog/tag/de-beers) - [Diamonds (1)](https://blog.gemfind.com/blog/tag/diamonds) - [Digital Brand Storytelling (1)](https://blog.gemfind.com/blog/tag/digital-brand-storytelling) - [Email sales pitch (1)](https://blog.gemfind.com/blog/tag/email-sales-pitch) - [GPS (1)](https://blog.gemfind.com/blog/tag/gps) - [Google Ads (1)](https://blog.gemfind.com/blog/tag/google-ads) - [Holiday Marketing Mistakes (1)](https://blog.gemfind.com/blog/tag/holiday-marketing-mistakes) - [Influencers (1)](https://blog.gemfind.com/blog/tag/influencers) - [JCK Vegas (1)](https://blog.gemfind.com/blog/tag/jck-vegas) - [Jewelry Digital Marketing Agency (1)](https://blog.gemfind.com/blog/tag/jewelry-digital-marketing-agency) - [June sales (1)](https://blog.gemfind.com/blog/tag/june-sales) - [Keyword Cluster (1)](https://blog.gemfind.com/blog/tag/keyword-cluster) - [Lab grown diamonds (1)](https://blog.gemfind.com/blog/tag/lab-grown-diamonds) - [Live chat support (1)](https://blog.gemfind.com/blog/tag/live-chat-support) - [Marketing 2021 (1)](https://blog.gemfind.com/blog/tag/marketing-2021) - [Marketing Strategy (1)](https://blog.gemfind.com/blog/tag/marketing-strategy) - [Micro influencer (1)](https://blog.gemfind.com/blog/tag/micro-influencer) - [National Holidays (1)](https://blog.gemfind.com/blog/tag/national-holidays) - [Online Marketing (1)](https://blog.gemfind.com/blog/tag/online-marketing) - [Online jewelry marketplace (1)](https://blog.gemfind.com/blog/tag/online-jewelry-marketplace) - [Online shopping (1)](https://blog.gemfind.com/blog/tag/online-shopping) - [Polygon (1)](https://blog.gemfind.com/blog/tag/polygon) - [RFID technology (1)](https://blog.gemfind.com/blog/tag/rfid-technology) - [Reward programs (1)](https://blog.gemfind.com/blog/tag/reward-programs) - [Shopping cart (1)](https://blog.gemfind.com/blog/tag/shopping-cart) - [Strategic marketing partnership (1)](https://blog.gemfind.com/blog/tag/strategic-marketing-partnership) - [User Engagement (1)](https://blog.gemfind.com/blog/tag/user-engagement) - [Visual Stories (1)](https://blog.gemfind.com/blog/tag/visual-stories) - [about JewelCloud (1)](https://blog.gemfind.com/blog/tag/about-jewelcloud) - [branding (1)](https://blog.gemfind.com/blog/tag/branding) - [bridal personas (1)](https://blog.gemfind.com/blog/tag/bridal-personas) - [buyer persona (1)](https://blog.gemfind.com/blog/tag/buyer-persona) - [certified the edge partner (1)](https://blog.gemfind.com/blog/tag/certified-the-edge-partner) - [conflict free diamonds (1)](https://blog.gemfind.com/blog/tag/conflict-free-diamonds) - [engagement rings (1)](https://blog.gemfind.com/blog/tag/engagement-rings) - [facebook features (1)](https://blog.gemfind.com/blog/tag/facebook-features) - [gemfind web design (1)](https://blog.gemfind.com/blog/tag/gemfind-web-design) - [instagram ads (1)](https://blog.gemfind.com/blog/tag/instagram-ads) - [jewelry appointment (1)](https://blog.gemfind.com/blog/tag/jewelry-appointment) - [jewelry business (1)](https://blog.gemfind.com/blog/tag/jewelry-business) - [jewelry event (1)](https://blog.gemfind.com/blog/tag/jewelry-event) - [jewelry industry (1)](https://blog.gemfind.com/blog/tag/jewelry-industry) - [jewelry marketing tips (1)](https://blog.gemfind.com/blog/tag/jewelry-marketing-tips) - [jewelry search ranking (1)](https://blog.gemfind.com/blog/tag/jewelry-search-ranking) - [jewelry website (1)](https://blog.gemfind.com/blog/tag/jewelry-website) - [local customers (1)](https://blog.gemfind.com/blog/tag/local-customers) - [measuring roi (1)](https://blog.gemfind.com/blog/tag/measuring-roi) - [millennial jewelry trends (1)](https://blog.gemfind.com/blog/tag/millennial-jewelry-trends) - [millennials (1)](https://blog.gemfind.com/blog/tag/millennials) - [mobile friendly website (1)](https://blog.gemfind.com/blog/tag/mobile-friendly-website) - [national buzz days (1)](https://blog.gemfind.com/blog/tag/national-buzz-days) - [new jewelry website (1)](https://blog.gemfind.com/blog/tag/new-jewelry-website) - [off page seo (1)](https://blog.gemfind.com/blog/tag/off-page-seo) - [online diamond search (1)](https://blog.gemfind.com/blog/tag/online-diamond-search) - [online marketing for jewelers (1)](https://blog.gemfind.com/blog/tag/online-marketing-for-jewelers) - [online marketing for the jewelry industry (1)](https://blog.gemfind.com/blog/tag/online-marketing-for-the-jewelry-industry) - [paid advertising (1)](https://blog.gemfind.com/blog/tag/paid-advertising) - [referral programs (1)](https://blog.gemfind.com/blog/tag/referral-programs) - [responsive web tools (1)](https://blog.gemfind.com/blog/tag/responsive-web-tools) - [responsive website (1)](https://blog.gemfind.com/blog/tag/responsive-website) - [seasonal promotion (1)](https://blog.gemfind.com/blog/tag/seasonal-promotion) - [sell jewelry on twitter (1)](https://blog.gemfind.com/blog/tag/sell-jewelry-on-twitter) - [social media trends (1)](https://blog.gemfind.com/blog/tag/social-media-trends) - [social networks (1)](https://blog.gemfind.com/blog/tag/social-networks) - [store traffic (1)](https://blog.gemfind.com/blog/tag/store-traffic) - [target market (1)](https://blog.gemfind.com/blog/tag/target-market) - [the edge (1)](https://blog.gemfind.com/blog/tag/the-edge) - [tracking web traffic (1)](https://blog.gemfind.com/blog/tag/tracking-web-traffic) - [vendor announcement (1)](https://blog.gemfind.com/blog/tag/vendor-announcement) - [website sales (1)](https://blog.gemfind.com/blog/tag/website-sales) - [websites for jewelers (1)](https://blog.gemfind.com/blog/tag/websites-for-jewelers) - [well designed (1)](https://blog.gemfind.com/blog/tag/well-designed) see all ### GEMFIND **Phone:**  **1-800-373-4373** **Email: info@gemfind.com** **Address: 1600 Dove St. Suite 110** **Newport Beach, CA. 92660** Facebook Twitter LinkedIn ### ABOUT GEMFIND DIGITAL SOLUTIONS GemFind Digital Solutions is the largest digital marketing company serving jewelry retailers for over 20 years. We specialize in helping jewelry stores create an effective profit-making program by curating a combination of key digital tools and websites, along with innovative apps that directly engage customers and build business. ### Latest Posts Copyright 2026 - [Main Website](http://www.gemfind.com) - [Contact](https://gemfind.com/contact/) - [Privacy Statement](https://www.gemfind.com/privacy-statement/) - [Terms and Conditions](https://www.gemfind.com/termsandconditions/)