The lifetime value of a client is the sum total they spend over their lifetime with your business. You can calculate this by multiplying the average purchase x frequency over the years.
Knowing the average lifetime value of a client allows you to determine how much you can spend on marketing to bring a client to your door.
For example, say the lifetime spend is $10,000 over 5 years. Could you conceivably spend $100, $200, $500 or more in marketing to bring this client in?
We’ve created a calculator you can use to determine the average lifetime value of a client. I strongly suggest you plug in your numbers and look at the results. I guarantee you’ll be pleasantly surprised at just how much a client could be worth if you follow our advice re up-selling and encouraging repeat purchases.