Lifetime Value

 

Lifetime value - Knowing how much a customers is likely to spend with you is important information when considering how much to spend when attracting new customers.

Lifetime value considers the total value for the entire relationship. 

Not only the value of the first transaction.

This presupposes you are going to have a ongoing relationship.

An example of this is if you attract a new customer who purchases an item for £30...

...and then go on to purchase 4 times per year...

...for 5 years the total spend would be...

...£600.

At 20% margin this customer would be worth...

 ...£120.

 

Knowing this gives you a framework for evaluating customer acquisition costs...

...and how to grow your business by attracting new customers in a cost effective manner.

 

If you would like to know more on how we can advise you on the best strategy for attracting new customers.

 

Contact Us by email or

 Mob 07984 749605

 

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