What is the value of your customer to your business
Yes. I know that number just seems like another number. Another number of many other metrics that we always consider, right? But this number in particular is particularly important. Well, it will help you understand how much your average client is worth. What is the To understand that, for example, if out of every 100 leads you manage to convert one into a customer, and each lead costs you 7 euros, for example, the accounts do not add up. Because you will need to spend 700 euros to get a client who on average is leaving you only 672 euros.you can’t value your customers solely on their first purchase. Because? Because you must try to get a customer to buy from you several times.
What is the point of knowing the value of the customer?
Therefore, your average customer value should increase as time goes by. How to calculate your average customer value it’s easy, don’t worry. You will only have to find how much each client has paid you in total . Make a list. And then add all the quantities . Then divide them by the total number of clients . Let’s take a very easy example. We have a client, let’s call him client 1 (so as not to get confused haha). Customer 1 has already purchased 4 times for executive email list a total of 450 euros. We also have customer 2 who has purchased for a value of 1,200 euros. Customer 3 has purchased for a total value of 60 euros. Customer 4 has purchased 200 euros. Customer 5 has purchased 1,450 euros.
How to calculate your average customer value
This tells us that in total we have invoiced these 5 clients 3,360 euros. And if we divide that total amount among the 5 clients, we have an average spending per client of 672 euros.did you know that most businesses, especially when they start, What is Aero Leads the value their customers for a one-time purchase? The problem here is that a customer is worth much more than their first purchase costs. I’ll give you an example. My own example. The value of the first purchase of the vast majority of my clients is less than 500 euros. But i can’t rate my customers on their first purchase. The average value of my clients is more than 1,500 euros.last week we addressed the topic of the main obstacles that prevent you from creating.
