Customer math for a new business

Have your bookkeeper prepare a report that shows what percentage of clients have been with the business at least two years and how many are new clients who just purchased this calendar year. Do clients purchase on a regular basis and do they stay with your business for the long haul?

For starters, how much can you earn from a newly acquired customer down the line, and how much can you afford to spend to acquire that customer?

The cost associated with attracting one new customer, include promotions, advertising and compensation for salespeople.

CLV shows you the predicted profit, over time, that a customer will bring you.