Average Value of a Single Customer Transaction – This the average revenue your receive from a single transaction.
Average Number of Transactions Over The Life of Your Average Customer – This is the average number of transactions you receive over the entire length a customer works with you. This calculation can reach for years. If you are a startup or new business this can be a projection based on assumptions of how long you will retain customers.
Average Lifetime Value of a Customer – This is the average value of a single customer transaction multiplied by the average number of transactions over the life of your average customer.
Percentage of Gross Revenue Spent on Marketing – This is the average lifetime value of a customer multiplied by the average conversion rate of a lead.
Cost Per Lead Target – This is the average value of a lead multiplied by the percentage of gross revenue spent on marketing.