ACV (Average Customer Value)

Average customer value describes how much revenue or economic value an average customer generates within a defined period. Unlike customer lifetime value which looks at the whole relationship, ACV usually focuses on one year or one contract period.

How ACV is calculated

The standard formula divides total revenue of a period by the number of customers in the same period. With 250,000 euro annual revenue and 500 active customers, ACV is 500 euro. Depending on the business model, gross or net values and with or without repeat purchases are distinguished.

Why ACV feeds into decisions

ACV is the most important reference point for many marketing decisions. It determines how much budget per lead or per new customer can sensibly be invested without making acquisition unprofitable. If ACV sits at 200 euro, an acquisition cost of 180 euro per new customer is not sustainable.

ACV in the context of performance campaigns

In JD Mail and JD Partner reportings, conversion and revenue values are captured so ACV can be derived per campaign, per segment and per publisher. Advertisers see which reach sources bring customers with high ACV and can redirect budget accordingly.