Imagine you have a business that is doing ok, sales are here and there, but you wanted to improve it. Now let’s assume your average life time value of a customer is £3,600 over a period of 3 years or £100 per month revenue. If you could “pay” a one off amount to generate that customer, what amount would you pay? Now obviously this all depends on what type of business you’re in and the profit margins but what would that be?
We realise at this stage it’s probably too vague to come to a figure so this is how we view it, it all about reverse engineering what you think you’ll receive against the cost it will take to generate it. When we work with customers they always say “If I invest an amount, I’d expect a positive ROI, and I’d invest all day long”. What they are really saying is “I want to know my numbers” and this is where we guide the process.
