4. Using the table below, determine what the average Annual Value and the average Lifetime Value of your clients is. That is, how much on average, does each client spend with you each year and over the course of their “buying lifetime” with you? (Appendix A contains an explanation of each line.)
|
A |
Number of clients you currently have |
|
|
B |
Amount of average sale |
$ |
|
C |
Average profit margin of each sales transaction |
% |
|
D |
Average dollar amount of profit on each transaction (B x C) |
$ |
|
E |
Number of sales per year per client |
|
|
F |
Average annual revenue value of each client (B x E) |
$ |
|
G |
Average annual profit value of each client (D x E) |
$ |
|
H |
Number of years client does business with you |
|
|
I |
Lifetime Revenue Value of each client (F x H) |
$ |
|
J |
Lifetime Profit Value of each client (G x H) |
$ |
|
K |
Number of your clients who would like to receive FREE gifts, special rewards and VIP recognition |
|
|
L |
Percentage of your clients who would be willing to refer others to you and in return receive FREE gifts, special rewards and VIP recognition (K ÷ A x 100) |
% |
|
M |
If the percentage of your clients in Line “L” refer only _______ clients to you, you will grow your business by (L x number of new clients they refer) |
% |
|
N |
Number of new clients you will generate (A x L) |
|
|
O |
Total number of clients you will have (A x L + A) |
|
|
P |
Additional annual revenue your business will generate (N x B x E) |
$ |
|
Q |
Additional annual profits your business will generate (N x D x E) |
$ |
|
R |
Total Lifetime Revenue Value (I x O) |
$ |
|
S |
Total Lifetime Profit Value (J x O) |
$ |
