One of things you need to do for your business is to determine the lifetime value of a customer or client. This is the lifetime income from that customer to your business and should include factors such as:
- Amount spent per year (minimum, maximum and average) on your products or services,
- Expected duration of relationship (min, max and average),
- If you have multiple levels of products/services you will also need to consider the likelihood of moving them up the value chain.
Now determine the fixed and variable costs in delivery your product or service. Fixed costs are those that you have regardless […]