Aureum calculates Customer Lifetime Value (CLV) using the following formula


CLV = Avg. Revenue per Invoice * Avg. Number of Invoices per Customer


Aureum is able to calulate CLV after importing invoices from an accounting platforms and payment processing platforms. Aureum also treating CLV as a rolling metric meaning it does isolate the calculation to a specific time range, but instead all data points at or before a given point in time.


For example, to calculate CLV this month:

  1. Total Invoices on or before the end of this month
  2. Total Customers with an invoice on or before the end of this month
  3. Total Amount Invoiced from the Total Invoices collected previously

    Next:

  1. Avg. Invoice Frequency = Total Invoices / Total Customers
  2. Avg. Invoice Value = Total Amount Invoiced / Total Invoices
  3. CLV = Avg. Invoice Value * Avg. Invoice Frequency