Put a price on their head: what’s the value of your next customer?

How much are your customers worth? How much does an average customer spend with your business? What’s the average lifetime sales of a customer?

Without knowing the answers to these questions (it’s basically the same question re-worded) you can’t evaluate the effectiveness of your marketing. You might also struggle to decide how much to spend on marketing.

However, if you know that the average lifetime value of a customer (CLV, LV or LTV) is £1,650, you can plainly see that it’s worth spending £500 on marketing each month in order to bring in new customers.

Much of the work I do is about bringing more customers to your door. So let’s put a price on their head. Let’s figure out what each customer is worth so we can decide if it’s worth devoting more – or less – time to content marketing.

In a future blog post I’ll look at ways to calculate the lifetime value of your customers.