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Calculating the Lifetime Value of a 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.

Lifetime Value Calculator

The 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.

Annual Revenue Per Unit

Include ALL annual fee income such as lease fees, inspection fees, renewal fees, application fees, etc.

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Average Months Managed

This is the average length of time that an account remains a customer. Usually between 18 and 42 months.

Months

Average Units Per Customer

Number of units owned per customer

Accounts
Units
Units Per Account

Lifetime Value Results

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