Salon, spa & fitness
Salon Customer Lifetime Value Calculator
What a salon customer is worth across the whole relationship, not just the first job.
Result
Gross profit, not revenue, because revenue you spend delivering the work is not available to spend winning customers. Referrals are the least reliable input here; measure yours rather than assuming.
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About this calculator
Why use gross profit rather than revenue?
Because a customer worth $8,000 of revenue at a 20% margin is worth $1,600 to you. Spending against the revenue figure is how marketing budgets quietly go underwater.
How many years should I use?
Look at how long your oldest customers have actually stayed. Most contractors guess high, and a shorter honest figure produces a budget that survives contact with reality.
What do I do with the number?
Compare it with what you spend to acquire a customer. If acquisition costs more than the first job earns but far less than the lifetime value, you can afford to be patient; if it exceeds lifetime value, the channel is losing money however busy it looks.
The formula
lifetime value = average job x jobs per year x years x gross margin
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Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.