These handy-dandy equations give you a ballpark estimate of how much to spend on acquiring a new customer. But they don't tell you how to spend that money -- and that's where things get interesting. You know and I know that an MBA is a bullshit degree, but nonetheless, you can learn a few things in business school. You can also skip business school, and learn them via a very handy infographic. Take this one by Kiss Metrics, on the subject of calculating a customer's lifetime value.
The basic idea is to take an average check, figure out how often the customer will come back, and how long the customer will continue to be one. But these can be crunched in slightly different ways that yield quite different results, as you see at the bottom:
To read the full, original article click on this link: Infographic Of The Day: What's The Value Of A New Customer? | Co. Design
Author: Cliff Kuang
