How much is your customer worth?

The worth of a customer is great in the eyes of a manager

But really, how much is a customer really worth?  Well, that’s a great question.  How does a manager or owner determine or better yet calculate the cost of each customer?  It all lies in a simple formula.  Take the advertising dollars for the week or month and divide that by the number of ups for the same time period.  For example take 1,000.00 dollars in advertising / 30 ups = $33.33 dollars per head.

Now you have a figure to work with.  Why would you allow a sales person to burn ups or not work with a customer.  Now you know the worth of a customer.

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