Here is a nifty info-graphic that shows you the steps to calculate the lifetime value of a customer.

Lifetime Value is a very important metric in you business!

Here’s a very simplistic example:

As a dentist, if you can add (through marketing) only two new patients (customers) each month (and keep them happy of course) and their Lifetime value is $10,000 each, would you pay $1,000/mo to get those patients (customers)?

I hope you can see the ramifications of that example!

2 x $10,000 = $20,000

One Year Value

In one year the cost to you would be $12,000. The lifetime return would be $240,000, even if you never added another patient (customer).

Let’s say you continued with your marketing plan each month, year after year. Well, I’ll let you do the math on that.

Go For The Long Term!

Forward thinking business persons look to the long term! They understand that to make money you have to spend money, time and effort.

I hope this was helpful.

If you need help calculating the Lifetime Value of Your Customer, leave me a message on my contact page or phone me at: (817) 677-8932

I will be glad to assist you.

++ Click Image to Enlarge ++

Source: How To Calculate Lifetime Value