Customer Lifetime Value


Customer Value

The average transaction or treatment value:
How many times per year does an average client buy from you?:
On average, how many years does a client continue doing business with you?:
Lifetime value of this customer: {{lifetime_customer_value | toCurrency }}

Now you know that one new customer is worth {{lifetime_customer_value | toCurrency }} to your business, you will want to keep this in mind when planning your marketing.

Referrals

How many referrals do you get on average for every 10 existing clients:
Lifetime Value Including Referrals: {{lifetime_customer_value_including_referrals | toCurrency }}

Gross Profit Margin

Enter the gross profit margin: %
Total Lifetime Profit of a New Client: {{lifetime_customer_value_including_referrals * gross_profit_margin_percentage/100 | toCurrency}}

As long as you can obtain a new customer for less than {{lifetime_customer_value_including_referrals * gross_profit_margin_percentage/100 | toCurrency }}, you will receive a positive return for your marketing dollars.

Return on Investment

Marketing expenses:
New Customers acquired:
Marketing cost to acquire customer: {{marketing_cost_to_acquire_customer | toCurrency}}
Return on investment: {{(lifetime_customer_value_including_referrals * gross_profit_margin_percentage/100 - (marketing_cost_to_acquire_customer))/(marketing_cost_to_acquire_customer) * 100}}%

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