Contents
Quick links to all the resources and forms on this page.
Recurring Payments/Standing Orders
Reversals
Taking off Admin Hold
Account Closure
Referral /Introduction
Lifetime Valuation
How is the Lifetime Valuation calculated?
To work out the Lifetime Valuation, we need to review the following variables:
Total BBX sales: New customers and revenue earned. (Note: Did you have to turn away a cash customer to service a BBX
customer?)
Total BBX purchases: Cash saved where otherwise cash would have
been spent.
Variable Cost (%): Cash cost to service a new BBX customer. This is
only the variable cost and excludes fixed costs. (e.g., for a restauranter, it
would be just the wholesale cost of the food/drink, which might be 30% of the menu price.)
Total Cash Fees: All fees including sign up and annual card fee
paid to BBX since opening the BBX account (less VAT).
Referral Ratio: Number of cash referrals received as a result of
servicing the BBX clients. (How many of your clients on average refer new
business?)
Average Customer Value: Average amount earned from a client. (By knowing the average customer value we can work out approximately how many new
customers you have received.)
The Calculation Formulas
Total Cash Spent = (total BBX sales * variable cost %) + (total cash
fees /1.2 )
Total Cash Saved = total BBX purchases – total cash spent
Cash Referrals = total BBX sales * (1 / referral ratio)
No. New Customers: = total BBX sales / average customer value
BBX Balance to Spend: = Current BBX balance available to spend in
addition to the cash savings
