Evaluating the costs and benefits of customer acquisition and customer retention

Every marketer’s least favorite question is “what is the ROI” or maybe it’s “can you put together a proforma?”

Both are valid questions, but it is difficult to commit to a number until you have some preliminary data.  Regardless, the questions are still asked after every pitch or brainstorming meeting.

Hopefully, ProFromGo has made answering these questions a little easier with our latest calculator.  We’ve created a simple work page to help you understand the lifetime value of a customer and the cost of acquisition. Please open the calculator on a desktop or set your phone’s browser to desktop site for an optimal experience.

Lifetime Value (LTV):  A “customer doesn’t simply represent one single transaction, but rather, a relationship that is far more valuable than one-time exchange.”  Understanding your customer lifetime value will help you determine how much a customer relationship is worth over a long period of time and how much you should invest to maintain that relationship. – SBA

Customer Acquisition Costs (CAC):  The average amount of sales and marketing dollars spent to acquire a customer.  Enter values in boxes below to calculate CAC.

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