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Lifetime Customer Value Tool

by KingOfContentMarketing
5 replies
It's beneficial to help clients determine the Lifetime Value of their customers. The math is easy but sometimes you just want to to plug numbers in and get the answer.

This page explains Lifetime Value and has a free download of an Excel spreadsheet with the formulas.

Determining the Lifetime Value of and Lifetime Profit From Your Customers

Even easier, here is a tool over at Harvard Business School. Click on "Tool," enter your numbers and shama-lama-ding-dong.

Customer Lifetime Value Tool
#customer #lifetime #tool
  • Profile picture of the author SashaLee
    Hi there,

    Great finds!

    All the best,

    Sasha
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    • Profile picture of the author ewenmack
      Once you've got that number,
      then you work out what you are willing to invest to buy a customer.

      In a sense, business is all about maths and psychology.

      Best,
      Ewen
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      • Profile picture of the author kenmichaels
        Originally Posted by ewenmack View Post

        Once you've got that number,
        then you work out what you are willing to invest to buy a customer.
        in other words your per lead cost.

        Not to beat a dead horse, but that is why a script is so important.

        If you know how much your lead cost is, and you know how many
        contacts you have to make in order to close a sale AND you know
        what your average ticket and expenses are ...

        that is how you make realistic growth projections.

        None of that is possible without a proven system i.e script.
        Signature

        Selling Ain't for Sissies!
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        • Profile picture of the author ewenmack
          Originally Posted by kenmichaels View Post

          in other words your per lead cost.

          Not to beat a dead horse, but that is why a script is so important.

          If you know how much your lead cost is, and you know how many
          contacts you have to make in order to close a sale AND you know
          what your average ticket and expenses are ...

          that is how you make realistic growth projections.

          None of that is possible without a proven system i.e script.
          Yep.

          Take the infomercial giant Guthy Renker for instance...
          they are prepared to run at a loss for 6 and even 9 months because they know they will be profiting from that one customer in the end.

          Others can buy the same ingredients in the bottles.
          Others can buy the same advertising for the same price.
          Others can buy celebrities to endorse the product...

          But none have the financial backing to sustain a loss for so long.

          In the end Guthy Renker win by the brute force of money.

          Investors are prepared to back them because of them knowing the numbers.

          Btw Ken, thanks for the follow up service, much appreciated.

          Best,
          Ewen
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  • Profile picture of the author Tracy411
    Great shares, Joe. I agree with what has been said here. It truly is a numbers game. The more you know, the easier it makes you to help the business grow.

    Tracy
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