Determine The Average Lifetime Value Of A Customer
Determining the average lifetime value of your customer is vital to your success as a business. This number tells you exactly how much you can spend in advertising and marketing to aquire each new customer.
What can be measured, can be improved.”
- What is the average sale?
- What is the gross profit margin for a new order?
- What is the average number of orders per customer?
- What is the average discount given to new customers (i.e. of the percent of people who bought something, what percentage are using a discount code and what is the average discount percent across all customers)?
- What is the average discount we give to current customers?
- What is the retention rate?
Average Lifetime Customer Value Tool
[message type=”success”]There is an outstanding tool from harvard university that can help you determine this number: Average Lifetime Customer Value Tool[/message]