How is customer value calculated for a business?
How to put a VALUE on your CUSTOMERS
- Invaluable because without customers you have no business but they do have a measurable financial value as well.
- The average size of their purchase?
- The profitability in each purchase?
- The frequency of their purchase or purchases (Car vs. Amazon/ groceries)
- Referral business (Do they win others over to your business?)
- How often? Size and profit of purchase? Over 20 years is LCV (Lifetime Customer Value)
