The Driver of All Marketing Efforts

You need to determine what the value of a customer is to your company. Answer the following questions:

How much will the average customer spend with you per year?

A = _____________

If you provide quality service and products, how many years can you expect to keep a customer ?

B = _____________

What is your gross profit, as a percentage of revenues?

C = _____________

The value (V) of a customer is:

V = A X B X C

We learned with our network consulting company that the average life of a customer was about 2