New Vs. Existing Customer Value


I'm trying to figure out the value of returning customers vs. new customers.

Our avg. order for new customers is $84.

The average spend for customers who purchase more than once is $148.65 (This means, if a customer purchased 2 or 3 different orders, their average spend is about $148.65 at the moment)

We have a customer return rate of about 10% – 13% (Let's take 10% to make it easy)

This means for every 100 customers we should generate about $8,400. Plus 10% of returning customers.

Now the value of the 10% returning customers is a bit lower. So because of that, do I calculate the difference of the avg. new customer vs. avg. returning customer? ($148.65 – $84 = $64.65) and apply his to the 10% expected returning customers?

So for example, let's say next month we get 100 customers.

100 * $84.00 = $8,400 (New customers)


10 * $64.65 = $640 (Returning customers)

Is my returning customer value $64.65? I feel like I'm missing something.

Any help would be HIGHLY appreciated. Thank you in advance.

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