Knowing your student and client repeat rate is important, but so is knowing their lifetime value. How much money does the average student and client spend over their lifetime? The goal is to increase the lifetime value.
The formula that LERN uses to determine lifetime value is 1 divided by (1-repeat rate) X average fee (student registration or client purchase). So 1/(1-50%) X $100 = $200. So if you have a student repeat rate of 50% and the average fee they spend is $100, the lifetime value of a student is $200. Some students will be more and others less, but the average is $200.
The goal is to increase your lifetime value by increasing your repeat rate and/or your average fee. So if your repeat rate increases to 75% and your average fee to $150, the lifetime value increases to $600.
It is important for front line staff to know the lifetime value of a student and a salesperson to know the lifetime value of a client. They can positively impact the increase of the lifetime value.