Sales Summary - Management Reports Life Time Value Tab

The [ Life Time Value ] screen enables users to view the lifetime value of a customer taking into account the marketing costs and the value of orders placed by them, see How To: Use the Life Time Value Screen. The screen consists of the filters, query parameters, action buttons and the grid.
Note: the information contained in the report is based on sales orders only, both issued and unissued.

Filters

  • Acquisition Year Start: the year the customer started buying from you.
  • Company Type (Red Traffic Light Filter /Green Traffic Light Filter traffic light filter): the company type of the customer.
  • Company Class (Red Traffic Light Filter /Green Traffic Light Filter traffic light filter): the company class of the customer.
  • Source Keycode (Red Traffic Light Filter /Green Traffic Light Filter traffic light filter): the source keycode, usually the first keycode a customer used with you.

Query Parameters

  • Retention Rate % S: the percentage of acquired customers who are likely to continue to reorder in subsequent years.
    Note: This is estimated using the number of repeat buyers in the Acquisition Year.
  • Retention Rate Inc %: what percentage the retention rate is likely to increase or decrease in subsequent years.
  • Referral Rate%: the percentage of acquired customers who are likely to refer new customers to buy from you.
  • Referral Rate inc%: what percentage the referral rate is likely to increase or decrease in subsequent years.
  • Orders per Year S: the number of orders the customers are likely to generate per year.
    Note: this is calculated from the actual order count in the Acquisition Year (Total Order Count divided by Customers Count)
  • Average Order Value S: what is the likely value of each order.
    Note: estimated from the actual order value and actual order count in the Acquisition Year.
  • Cost of Sale % S: what percentage of gross revenue is made up of your cost of sale for stock/goods.
    Note: estimated from the actual order value and actual cost of sale in the Acquisition Year.
  • Acquisition Cost S: the cost of bringing in these customers to your business in terms of marketing spend.
    Note: estimated form the actual keycode costs in the Acquisition Year. Keycodes would need to be attached to orders generated in the Acquisition Year for the target customers.
  • Marketing Cost: the amount you expect to spend on marketing in subsequent years.
  • Marketing Cost Inc %: the percentage marketing spend is likely to increase or decrease in subsequent years.
  • Segment Size S: the number of customers used as a basis for the whole analysis.
    Note: estimated from the actual count of customers based on the Acquisition Year Start / Company Type / Company Class and/or keycode filters.

Note: S figure is generated by the system but can be overwritten.

Action Buttons

  • BtnSSQuestionMark.jpg: displays information about the adjacent field, how it is calculated or where the information is generated from.
  • BtnSSGridHelp.jpg: double-click on a line in the grid to display an information popup explaining the meaning of the line.
  • BtnCreateHeaderSS.jpg: populates the query parameters fields and creates the header lines for the grid.
  • BtnGenerateGridSS.jpg: populates the grid according to the parameters and filters.
    Note: must be used after the Generate Header button.

Grid

  • Row Headings: taken from the query parameters.
  • Acquisition Year: the results based on the parameters in the acquisition year.
  • Year 2 to Year 5: the results based on the parameters in the subsequent years.

See Also


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