How much should a new customer cost?

How much should a new customer cost?

The calculation is easy;

                                                    Sales & Marketing Cost
New Customer Cost =              ————————————
                                                  Number of New Customers

The total cost should include all relevant sales costs including; Salaries, Commissions, Bonuses, Expenses as well as all marketing and advertising overheads associated with acquiring new prospects.

Then you need to calculate how much the new client is worth (Lifetime Value of Client)

                                                                 Customer Value
Customer Lifetime Value  =                      X
                                                            Average Customer Lifespan

Below is a link to calculator to help you identify how much new clients are costing your business

So how much should you spend on gaining a new customer?

Directionally you should want to achieve between 3:1 ratio (ie: The value of a client should be 3 times that of the cost to acquire them)

Every business sector and business is different, but every business requires new clients to progress and grow, if you are not winning enough new business maybe you need to consider both how much you spend on client acquisition and how you spend it?

How can Consulmax Help?

Consulmax have been helping customers with their sales processes since 2010, we offer a range of services that will make the calls and follow the sales process for you!

Telesales                            from £350 per month

Sales                                    from £500 per month

Sales Management        from £850 per month

Sales Training                 from £250 per day

The best part is that our charges always come from new revenue!

Think about that then give us a call 0203 879 1427

Paul

paul@consulmax.co.uk

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