July 17, 2024

Customer Life Time Value

Good Morning
The holiday season has started. If you’re in retail, that means this is the time you get no time off and you’re as busy as can be, which is good. You can use the following information after the holidays when you have some spare time.
This is the time of year that many businesses sit down and start planning for next year so that they can hit the ground running the first week of January.
I have found one of the key factors or number that most businesses leave out when planning is the LTV, Life Time or Long Term Value of their average customer, client or patient. Without knowing this number, all planning is worthless and a waste of time and resources.
Businesses must know on average what each customer is worth so that they can plan out how much money they can invest in gaining new customers and and keeping existing ones. Also whether it’s worth staying in business.
Here is a sample way to figure out your LTV:
Write down the average “per visit” invoice for your average customer. Multiply that by how many times per year that customer uses your service. You now have your yearly value of your customer. Now how many years does your average customer use your services? Multiple that number with your yearly value number and you get your Life Time Value of just one customer.
Now you can effectively do your planning, knowing what your customers are really worth to you and your business.
If you need some help with this or figuring out what your investment is to acquire a customer or planning for next year, just let me know. I have some time open to help you. Hurry; time is running out. The 1st of the year will be here soon.
*****
As of the 1st of the year I will be offering a special monthly news package that includes a printed newsletter with the latest in advertising and marketing techniques, a Q&A session, interviews with other experts that will enhance your business and additional resources.
The special introductory subscription price is $24.97 per month.
This special price will end on December 31, 2015, so sign up for this service NOW so you can be on top of the latest trends that work. Contact me for a subscription sign-up form.
Until next week,
Great Things Happen, But You Have To Take Action, NOW!
 Philip Freedman
Your Doctor of Customer Retention

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