When you’re working on small business marketing strategies, understanding your customer lifetime value will help you to make smart choices in your marketing. When I teach this principle to clients, we need to know:
- what the dollar amount of an average sale is
- the number of sales per year to that customer
- the number of years that customer typically does business with you
- how many referrals that customer makes
- the percentage of those referrals who also become customers.
Enter those numbers into the customer lifetime value calculator below and you’ll have a much clearer understanding of what a customer is worth. Why is that important? Because if you know what they’re worth to your business, you can strategically invest in new customer acquisition.
Download this FREE lifetime value calculator by clicking the blue link.
If you have questions or need help, drop me a note here and I’ll do what I can to assist you.