Knowing what a customer is worth tells you what you can afford to spend winning one. This works it out from real numbers and compares it to what you actually pay.
What's Included
- Lifetime value by segment not one blended figure that hides everything.
- Acquisition cost beside it which is the comparison that matters.
- Margin-based rather than revenue-based so the number is honest.
- An assistant that names your most valuable segment.
How To Use
- Calculate on margin, not revenue, or you will overspend on acquisition.
- Split by segment. The average customer usually does not exist.
- Compare against acquisition cost. Alone the number is just interesting.
- Recalculate quarterly. Repeat rates move faster than you think.
Feed it into the ROI calculator, and act on it with CRM prompts.