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Marketing Concepts
   
Use This Form to Calculate Customer Lifetime Value
By John P. Hayes, Ph.D.

A: Average Value of a Sale Per Customer: Total sales divided by total number of customers provides the answer.



A.
Average Value of a Sale Per Customer:
Total sales divided by total number of customers provides the answer.
______
B. Number of Sales Per Customer Annually:
How many times does the SAME customer buy from you each year?
______
C. Number of Years Customer Buys From You:
Seven is a reasonable expectation for most businesses.
______
D. Gross Annual Sales Per Customer: (AxB)
Multiply your answer on line A times your answer on line B
______
E. Customer Lifetime Value: (CxD)
Multiply your answer on line C times your answer on line D.
______
F. Number of Customer Referrals Annually:
How many referrals do you get from a customer in a year?
______
G. % of Referrals Who Become Customers:
What percentage of the time do you turn referrals into customers?
______
H. Total Number of Customers From Referrals: (FxG)
Multiply your answer on line F times your answer on line G.
______
I. Gross Sales From Referrals: (ExH)
Multiply your answer on line E times your answer on line H.
______
J. Maximized Gross CLTV: (E+I)
Add answers on line E and I.
______

This Free Report is not intended as business advice. Consult with appropriate advisors prior to franchising a business. For information about further assistance from Dr. Hayes, call 972-985-8044.



John Hayes is a prolific writer, popular speaker, seminar leader and consultant to businesses in the United States and internationally. He is an advisor to small business owners, independent distributors, franchisees and franchisors. john@hayesworldwide.com

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