Growth Calculators

Important KPIs To Track In Business

Now, we are going to follow the K.I.S.S. method on these calculations just to give you a general insight on a few metrics that you must keep track of as a business owner. The following are calculators for Customer Lifetime Value, Average Cost Per Acquisition, and the Ratio between Lifetime Value and customer acquisition cost.

Take your time, play with the calculators to remain informed of the data so you can make dat-driven decisions.


Check out the video below:

Business Metrics

Step 1: Calculating Customer Lifetime Value

The average amount a customers (in general) will pay you for a service
Only use the average amount of times someone uses the service annually. EXAMPLE: If someone uses the service once a month, place 12 as an answer.
How long does a customer stay with you? 3 years? 10 years? 20 years? Place the amount of years as an answer.
Average Customer Lifetime Value$

Step 2: Calculating Average Cost Per Acquisition

Get a rough estimate of total sales and marketing expenditures for the period
How many new customers/clients did you gain in the given period?
Average Cost Per Acquisition$

Step 3: LTV to CAC Ratio

This ratio can be an insight on whether your business model isn’t sustainable OR if you are under utilizing your marketing and sales budget. With the Ideal ratio being 3:1, if your data results in anything less than 3 — you need to either increase the CLTV or spend less money to acquire the customer. If it is more then 5 you are most likely under utilizing your marketing budget. Another indicator for a higher number (lets say 15+) you could be experiences a rapid growth in your organization and that may come with a list of obstacles/opportunities as well.

Input the total value from Step 1
Input the total value from Step 2
Sustainability Rate

Social Media Metrics

Average Engagement Rate

The Average Engagement Rate is the number of engagement actions (e.g., likes, shares, comments) a post receives relative to your total number of followers. Why is this important? In a world where many people are obsessed with the amount of followers, it really doesn’t matter if you aren’t engaging them. So a metric like the Average Engagement rate is really what matters and allows for you to tell if your content resonates with the audience. If you have 100 followers or 100,000…calculate your engagement rate on a consistent basis.

Total amount of Likes (or reactions) for the period observed
Total amount of comments in the period observed
The total amount of SHARES in the period observed
The total amount of FOLLOWERS for the platform
Average Engagement Rate %

Audience Growth Rate

Check your average growth rate either on one platform or across multiple platforms just by following this simple calculator. The point is to not focus on how many new like your can get (because that is a never ending goal) but to focus on how you can keep a consistent growth rate or achieve a higher growth rate than your competition.

Total amount of new followers in the period observed
The total amount of FOLLOWERS
Audience Growth Rate %