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