SEO for Property Managers - Part 2 Calculating Lifetime Value of Customer

David Borden

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October 20, 2014

SEO for Property Managers Part 2 - Calculating Lifetime Value of Customer

Before starting an SEO strategy, a property management company should figure out its “Lifetime Value of a Customer” or LVC. This number will help the company determine the ROI of any advertising campaign including organic search. 

To compute the LVC use the following formula: 

RPU = Revenue per Unit (Include ALL annual fee income including lease fees, inspection fees, renewal fees, application fees, etc. and divide by 12) Usually between $1500 and $4000. 

AMM = Average Months Managed (This is the average length of time that an account remains a customer) Usually between 18 and 42 months. 

APC = Accounts per customer (Number of units owned per customer)

MRA * AMM * APC = LVC The lifetime LVC calculation is the key to all of your advertising campaigns. Obtaining an ROI For each new customer acquisition strategy, LVC will help the company focus on the most effective campaigns and get the best use of limited advertising funds.

About the Author

David Borden

David Borden

With a resume that includes West Point graduate, Captain of the West Point Team Handball team (which, interestingly, is also referred to as “Borden Ball” around the world. Google it. We’re not sure which name came first, but we’re pretty sure Dave could tell you), US Army Chinook helicopter pilot and Co-founder, President & CEO of what is now the leading website in the country for advertising long term residential rentals, it stands to reason why Dave has a place at the PMW kitchen table: his appetite for success. And, well, because he keeps us laughing.

As our resident funny-man (possibly self-proclaimed), his booming voice can be heard spreading the PMW gospel to anyone who’ll listen. And, frankly, even those who have no interest in property management. (Don’t they teach “Inside Voice” at America’s oldest military academy?)

But his high-decibel, funny ways become awfully serious when it comes to staying one step ahead for the good of our customers; because Dave has been there. As a second-generation property manager from Colorado Springs, CO, he knows the struggles that property managers go through and painstakingly dissects every step of their process to come up with ways to ease their burden.

As former CEO & President of RentClicks (which went on to become, he strategically positioned their business to become NARPM’s first official partner and was awarded NARPM’s National Affiliate of the Year three times.

When he’s not devouring industry information at our kitchen table, you might find him bellying up to a plate of wings while watching his beloved (understatement) Broncos, flipping channels in search of a historical documentary, searching out a tennis match or preaching the ways of the world to his pre-teen sons, Andrew and Brady.