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]

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