November 29, 2002, Newsletter Issue #68: Calculate the Lifetime Value of your Customers - Cultivate REPEAT Business!

Tip of the Week

Calculate Life Time Value of your Client one of two ways below:

Figure from Actual Sales History
The Lifetime Value of each customer is equal to the total dollar amount of net profits of the last 4 years total, divided by the number of repeat customers during that same time period.

Figure by Estimation
The key here is to be conservative. To do this estimating properly you should already know what your profits were for the past few years. Youíll estimate the number of repeat customers you have. Itís important that you have a realistic sales figure to work from even if you donít have an accurate record of how many repeat customers you have. The rest of the calculations are the same as above.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Small Businesses Tip Site? Request a Tip Now!

Guru Spotlight
Byron White