Lifetime Value refers to the amount of revenue and profits you expect to receive from your ideal client over the term of your relationship with them. When you know the dollar amount you will earn from each and every client that does business with you, it provides you with the knowledge you need when setting a budget for your marketing efforts.
Have you ever observed a business that was giving away something of value to it’s clients, and you knew for a fact that it was costing them money? Thse are called “Loss Leaders” or “Self-Liquidating Offers”. You see this being done regularly with grocery stores, free samples and very frequently with cleaning businesses too..
Why do they do this – give stuff away for free? Because they understand the lifetime value of their clients. They know that every client that buys what they sell is worth a specific and predictable dollar amount. In other words, it’s worth giving something away for FREE to get a new ideal client…
Watch the video above and then complete the 3 worksheets. These worksheets will give you a great insight into your lifetime value for your clients, as well as cost of goods sold and profit worksheet. Then, I’d like you to take a look at the following Resource Sheet below: Cleaning Business KPI Calculations… This gives an in-depth look at each of the KPI’s, and how to calculate them. Do you have questions? Great…. please post your questions in our private Facebook Group, and I’ll answer each on on our Live Group Call later this week.
Here’s an example of a full data analysis report you can swipe and deploy for your cleaning business: f58-data-analysis-report-1