DAX Customer Lifetime Value Measure

A simplified CLV: total revenue per customer across all time.

Customers and RetentionIntermediateclvlifetime valuecustomer

DAX code

Customer Lifetime Value =
-- Simplified CLV: total revenue per customer, ignoring margin, churn probability and time value
VAR TotalRevenue = CALCULATE([Total Sales], ALL('Date'))
VAR CustomerCount = DISTINCTCOUNT('Sales'[CustomerID])
RETURN
    DIVIDE(TotalRevenue, CustomerCount)

Notes

A production CLV model typically also factors in profit margin, average customer lifespan and discount rate - this is a starting point, not a full model.

Requirements

Builds on these measures

How to use this measure

  1. In Power BI Desktop, select the table that should hold the measure and choose New measure on the ribbon.
  2. Paste the code, then replace the placeholder table and column names with your own. The My table names fields above do this for you.
  3. Run it through the DAX Formatter if you want it laid out in your team's style.

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More DAX resources

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