How to calculate it in one evening
- Take every payment from the last twelve months.
- Mark each customer: first purchase or repeat.
- Calculate the share of revenue repeat purchases produced.
- Calculate the average number of purchases per customer.
- Multiply by average deal size. That is your working LTV.
Why the base stays silent
- nobody has been given the job of working it
- no segments, so it is unclear who to offer what to
- no reason to reach out beyond «how are things»
- comp pays for new customers, not for returning ones
On one project a school had a base of more than two thousand students that nobody worked. We put our first reps straight onto it and in two weeks brought in almost $10,000. That is money already paid for in marketing, and the selling cost 6% in commission.
What produces the most
- A second product for people who finished the first. The warmest segment there is, and usually ignored.
- Extended access or servicing. A cheap deal with a high acceptance rate.
- Bringing back the people who did not buy. People who showed interest and vanished often simply never got a reason.
One number for the weekly report
The share of the week's revenue from repeat purchases. One figure that tells you whether the team works the base or only the new enquiries.