Customer Acquisition Cost (CAC): How much it costs your company to acquire a new customer. Review acquisition-marketing efforts over past 12 months; divide into efforts resulting in a direct sale separate from those that resulted in a lead that was then converted into a sale. I am not suggesting campaigns that generate lots of leads…

2. Customer Retention Cost (CRC): How much it costs your company to retain and market to existing customers/donors. Same as CAC, but collect expenses and results only for efforts targeted to existing customers. Remember, we are measuring total customers who responded not the total number of transactions. That way you can see how many people…

3. Customer Purchase Frequency Rate: The average number of times a customer purchases/donates over a certain period. Two simple ways to increase response and sales, offer more products or get customers to buy more often, told you this would be straightforward stuff. Knowing the current frequency rate is the first step toward moving the needle…

6. Customer Lifetime Value (CLV): The total value of purchases over a customer’s lifetime (or average length of time they actively buy from the company). This is the honker of them all, when you identify the Customer Lifetime Value it is like finding buried treasure. Once you know how much customers buy and for how…