Jumpstart your Child Care Center Marketing Fall 2012 - Page 15

1. Lifetime Customer Value

Follow the steps and plug in your own numbers, and you'll be on your way! Track this number over time to see any patterns.

A. First calculate your average annual gross revenue, per family:

Annual Gross Revenue

Yearly Average =

Number of Families

Annual Gross Revenue Per Family

For example:

$550,000

=

50 Families

$ 11,000

Annual Gross Revenue Revenue, per family

B. Next, calculate the average lifetime of a family in your program. Use a 3 year period to average your number.

O

Average lifetime

x

Annual Gross Revenue, per family

=

Lifetime Customer Value

For example:

$11,000 x 3 years= $33,000 Lifetime Customer Value