IN BRIEF
Average Family Spend is a Pro Insights metric that shows how much a family spends with your program, on average, before they permanently exit. This metric helps administrators better understand customer lifetime value at the family level and evaluate long-term financial trends.
Overview
Average Family Spend represents the average total amount a family spends with your program before they permanently exit. This metric is designed to help you:
- Understand customer lifetime value at the family level.
- Identify long-term revenue trends.
- Inform decisions related to pricing, retention strategies, and marketing efforts.
Only families that have fully exited your program are included in this calculation, ensuring the metric reflects completed customer lifecycles rather than active or temporary gaps in enrollment.
Deleting source data will affect the accuracy of results.
How is Average Family Spend calculated?
- Only exited families are included: A family must have no active enrollments for 90+ days to be considered exited and included in this calculation.
- Total spend per family: We sum all payments made by each exited family during their time with the program, including tuition, fees, and other charges.
- This is then averaged across all exited families: The total spend is divided by the number of exited families to calculate the average.
Formula
Using these numbers, Pro Insights uses the following formula to calculate Average Family Spend:
Total Spend by Exited Families ÷ Number of Exited Families = Average Family Spend
Example
If 5 families have exited and their individual total spends were:
- $1,200
- $1,800
- $950
- $2,100
- $1,400
Then:
Average Family Spend = $1,490.00 (i.e., ($1,200 + $1,800 + $950 + $2,100 + $1,400) ÷ 5 = $1,490)
This metric helps you gauge the financial value each family brings and informs decisions around pricing, retention, and marketing.
Troubleshooting & FAQs
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Why are some families not included in the Average Family Spend calculation?
- Only families with no active enrollments for 90 or more days are considered exited and included in this metric.
-
What types of payments are included in a family’s total spend?
- All payments made during the family’s time with your program are included, such as tuition, fees, and other charges.
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Will deleting historical data affect Average Family Spend?
- Yes. Deleting source data will affect the accuracy of this metric and may change reported values.
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Can this metric be used to predict future revenue?
- While Average Family Spend reflects historical data, it can help inform pricing, retention, and marketing strategies when analyzed alongside other Pro Insights metrics.
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