Lifetime Customer Formulae

What is the value of a lifetime customer?

To explain this, let use a restaurant patron as an example?

Here's a simple formula. Let's say your average sale per customer is $35.

Let's say your average sale per customer is $35.

Multiply that to the frequency per month (3x per week = 12 times per month = $144) - That equals $1730 per year.

The average lifetime customer lasts about 5 years.

Multiply by 5 = $8640 = equals to one happy lifetime customer.

From one satisfied lifetime customer, the average number of referrals per satisfied customer is for least 1 - 2 people.

Multiply that 1 satisfied customer x 2 = the value of a restaurant guest = which is $8640 x 2 = $17,280.

And that's how you get the value of a lifetime customer.


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