….to break even?
How much is an average customer worth to you?
How much profit have you made in the last 3 months?
What was the average customer spend?
If you don’t know this number then spend some time working it out.
To calculate the number of customers you need, start by defining your business objectives. Are you aiming to increase revenue, expand market share, or achieve a specific growth target? Clear objectives provide a foundation for setting measurable targets and guide your customer acquisition efforts.
Analyzing your conversion rates at each stage of the customer journey is essential for estimating the number needed. By tracking metrics such as website traffic, leads generated, conversion rates, and sales, you can identify the conversion rates for each stage. Use these rates to calculate the number of leads or prospects required to achieve your desired number of customers.
Customer churn refers to the rate at which customers stop doing business with you. Factoring in churn rate and customer retention is crucial for estimating the number needed to sustain growth. By focusing on customer retention strategies, you can reduce churn and optimize your acquisition efforts to compensate for lost customers.
Once you have calculated the number of customers you need, it’s time to develop an acquisition strategy. Consider various marketing channels, such as digital advertising, social media, content marketing, or referral programs, to attract and convert customers. Define key performance indicators (KPIs) and track your progress regularly to ensure you are on target to achieve your acquisition goals.
Next, work out your business outgoings….
Rent
Business Tax
Staff costs
Marketing
Resources
Now work out the number of customers you need to pay for your outgoings
ie. Outgoings divided by customers.