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Calculating Your Total Customer Value
What's your average sale?
Number of Customers per Year
To calculate the value of a single customer and their potential enter "1"
Average Sale Amount
Average Up-Sell Amount
Your goal should be to upsell each customer with complementary products/services.
Enter the average upsell amount here
% That take up Up-Sell
Not everyone will take up your upsell offers.
Enter a percentage of customers you think might. 20% is a reasonable figure. Of course your goal should be to increase this.
So play with this figure and see how much it can positive impact your profits.
Number of Sales per year per customer
The first sale is always the hardest.
Having your clients make repeat purchases adds profit to your bottom line with significantly less marketing expenses.
Number of Years customer buys from you
Obviously, the more years you can get a client back, the greater your profits
Number of Referrals from customer
The more referrals you get, the less you have have to spend on traditional marketing.
Not everyone will refer, so you can enter a fraction here.
Say 10% refer, enter .10 etc.
% of Referrals who become customers
RESULTS:
Value of Up-Sells
Gross Average Sales per year per customer
Gross Average Sales over life of customer
Referrals who become customers
Gross Sales from referrals
Total Customer Value
E: rashid.kotwal@revealedresources.com
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