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Understanding more details about LocalReferrals and Customer
Understanding more details about LocalReferrals and Customer

Details, customer lifetime value and more!

Rosie Barton avatar
Written by Rosie Barton
Updated over 7 months ago

How do I view the details of my LocalReferrals program?

From the Dashboard, visit the Settings tab then click LocalReferrals. From here you can see the details of your LocalReferral program.

Understanding Your Customer Lifetime Value

Building a profitable referral program is predicated on understanding your Customer Lifetime Value (“LTV”). Your LTV helps you determine how valuable a Customer is to you. It factors in three metrics:

  1. Avg. Revenue Per Transaction ($): How much money does the average Customer spend per transaction?

  2. Transactions Per Year Per Customer (#): How often does each Customer purchase from you per year?

  3. Customer Lifetime (Years): How long does the average Customer remain your Customer? By multiplying these 3 numbers together you are able to determine your LTV expressed in $.For Example: A cleaning company where Customers pay on average $100 per clean, receive 6cleans per year and a Customer remains with the Merchant for 2 years, has an LTV of: $1,200 ($100 x 6 transactions per year x 2 years)

What is the difference between an Advocate & a Friend?

The Advocate is your Customer who is registering to refer people in their network to your business. The Advocate receives a Reward after the person they refer purchases from you.

The Friend is the person referred by the Advocate to try your business. The Friend receives a gift on their first purchase.

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