Knowing your customer worth is a critical component to growing your business. This is important because the average company loses 15 to 20 percent of its customer base each year. Check out our infographic below to learn how to calculate customer worth:
The Math Behind Customer Worth
In this case, 10% of a senior living center’s responses convert to tours. Of those, 30% of tour participation ends in a new lease. If the average monthly lease payment is $5,000 and the average stay is 18 months, the lifetime value (LTV) of one new lease is $90,000*.
*campaign for an audience of 5,000 records.
Once you determine your customer worth, or lifetime value, you’ll be on track to maintaining a successful business strategy.