Customer lifetime value (CLV) quantifies the total worth of a customer relationship. Excel provides accessible tools for building valuation models.

Basic CLV Formula multiplies average purchase value by purchase frequency and customer lifespan.

Retention-Based Models account for customer churn using retention rates to calculate expected lifespan.

Discounted Cash Flow adjusts for time value of money—future revenue is worth less than current revenue.

Cohort Analysis tracks customer value by acquisition date, revealing how behavior evolves over time.