Success of business depends on customers, you need to find out your profitable customers, Customers are intangible assets so it's not easy to calculate customer value,Corporate Business Solutions,business consulting company helps you to find out your profitable customers.

1. How to Calculate Customer Value

2. Customers
are
an intangible asset for
businesses

3. They do, however, have a
value to be considered
● Customers equal sales
● They also equal return business
and referrals
●This all adds up to profits for your
business

4. 1.Customers’ Annual Profit
Contribution
● Determine how much revenue a
customer creates, as well as what
expenses or costs they incur. Subtract
the expenses to see what the
customer means, financially, on an
annual basis.

5. 2. Determine Retention
Expectations
● How long will you keep the
customer
● This is just a reasonable estimate
● Determine which customers have
more loyalty or are likely to be
repeat customers

6. 3. Estimate Your Retention
Costs
● Some customers get discounts
● You have to market your brand
(that costs money)
● Reselling efforts can get price

7. 4. It’s Time to Do the Math
● A simple cash flow model will work
● Make sure to include operating
costs and expenses, if necessary

8. ● This combines the projected
revenues, expenses, and continuous
cash flow throughout the customer
lifetime.
It’s Time to Do the Math

9. Now that You Know, Go!
Once you find your most profitable
customers, your focus should be on
them because they are the reason for
your success.
www.cbs-cbs.com/
www.facebook.com/CorporateBusinessSolutions
www.youtube.com/user/cbsadvisers

10. Now that You Know, Go!
Once you find your most profitable
customers, your focus should be on
them because they are the reason for
your success.
www.cbs-cbs.com/
www.facebook.com/CorporateBusinessSolutions
www.youtube.com/user/cbsadvisers

11. Click Here To know more about Customer Reviews
for Corporate Business Solutions:
For Reviews You can Watch the Video:
https://vimeo.com/119329734