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December 17, 2018

Economics of a customer life time value and customer acquisition calculator

By Chris Vendilli 1 Minute Read

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.

Chris Vendilli
About the Author
Chris is the founder and CEO of Vendilli Digital Group. In his free time, you’ll find him camping, fishing, or playing beer league ice hockey with a bunch of guys who refuse to admit they’re already over the hill.

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