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Customer lifetime value calculator for local businesses

A customer who comes back every month is worth far more than their first visit. See what a typical customer is worth to you, and what you can afford to spend to win one.

Start from an example

Examples only. Change every number to match your business.

One customer is worth$1,080in sales over 3.0 yearsThat's $648 profit after direct costs.
$194you could spend to win one new customer
$360in sales from each customer per year

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Get more leads for less

Flexi Local runs Google and Facebook ads for local businesses and reports cost per lead and cost per customer every month.

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How to use your result

  1. Use your till or booking system to find average spend and how often customers return.
  2. Be honest about how long customers stay. Use your records, not your best customer.
  3. Use the 'could spend to win one' figure as a ceiling when judging ads, offers and referral rewards.
  4. Raise lifetime value by asking happy customers back: reminders, loyalty cards and a quick thank-you after each visit.

The sums

Lifetime value = spend per visit × visits a year × years. Lifetime profit = lifetime value × gross margin. What you could spend = lifetime profit × the share you chose.

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Questions about this tool

Why does lifetime value matter?

It tells you what a new customer is really worth, so you can judge whether an advert or offer that loses money on the first sale still pays off.

What if my customers only buy once?

Set visits to 1 and years to 1. Your lifetime value is then your average sale, plus any referrals, which this calculator doesn't count.

See where you rank before you spend another dollar on marketing.

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