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.