At most, how much should you spend to acquire new customers? The answer to that question is the metric called customer lifetime value. 
Customer lifetime value is a function of how much on average customers spend a year, the attrition rate, and customer acquisition cost.
Lifetime value is basically how much profit should you expect from a customer during its lifetime. Although you can segment your customers and get more accurate results of lifetime value by location, products purchase, and duration of the relationship, the overall average can give you a good perspective on how much to spend in advertising and marketing for each new lead.
Our research team here at Mineful has developed a useful and free customer lifetime value calculator for you to compute your company’s customer lifetime value. It is very simple to use. Plug in a few numbers and see how the value of your customers change with each variation of the inputs.
The calculator also gives you a perspective on how many customers you are losing per year and how much is that costing your company. It also computes potential improvement; how much benefit you will gain if you improve customer attrition rate by a few percentage points.
Go ahead try it out, regardless of the business you manage, this calculator will be very useful. We’re also interested in hearing your thoughts about it on the comment section below. Isn’t this a nice romantic Valentine’s gift from the Mineful team?
