When you think about your customers, you should be thinking about the LIFETIME value to your business. Below is an exercise for you work out that lifetime value. The results may really surprise you.
A.. Average sale =
B. Number of sales per year =
C. Number of years customer buys from you = Rule of thumb used is 10 years
D. Number of referrals from customers =
E. Percentage of referrals who become customers = %
F. Gross sales per year (AxB) =
G. Gross sales over lifetime of customer (FxC) =
H. Referrals who become customers (DxE) =