What is the true lifetime value of your clients? Further data shows some interesting results!
There has been a lot of talk of ‘average lifetime value’ of a client in a veterinary clinic, but we have never seen any proof of this figure. Historically it has been reported based on – patient lives on average for 10 years, and average client spend is $900 so the average value of a client is $9,000. This sounds quite reasonable as pets do survive around 10 years on average and an average client does spend $900.
Does that mean if you spend $9,000 to gain a client you will break even? Absolutely not – remember you only gain the profit of 10-20% of that value, so $900-1,800 in profit. If you spend $900 to gain a client you may just be breaking even, in other words making no money.
BUT, the second factor that hasn’t been considered – does a client last 10 years at one veterinary clinic? Unfortunately not, we have data that shows a client only lasts on average for FOUR years at one veterinary clinic!
We have started monitoring average lifetime client value and profit based on this additional data and the results are interesting, as are the variances between different veterinary clinics. If you are using profitdiagnostix (www.profitdiagnostix.com) then we have added these values to your KPIs.
Join us on Wednesday 13 January midday (Qld) to get more information and ask questions. We will be holding a web masterclass on this new and exciting KPI.
Register here https://us02web.zoom.us/webinar/register/WN_UA-vJ76ZQEe-IGSkhhfqPQ