About Formulas

With Customers KPI’s information, we can make some calculations to predict future revenues, not only from a global perspective but also in each customer segment.

The first step is to define some value for formulas variables. Please navigate to “Marketing/ Marketing/Configuration” and then on the left side choose “Customer Equity.”


The first block is used to define whether you want to see customer KPI’s on his customer page (in the admin) and which ones do you want to see.

The “Customer Equity Variables” values will potentially be used in the formulas you define.

  • Rate of Discount - The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows. Usually between 8 and 15.
  • Average Customer Lifespan – For how long a customer can remain a customer.
  • Period Evaluation – When building formulas, you have the option to load values from the current period or globally. How to define a period? (usually year).