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