Customer Lifetime Value Calculator
What a repeat customer is worth, and therefore what winning one is worth.
- Lifetime value
- $3,060
- Lifetime revenue
- $6,800
- Sensible maximum to win oneA third of lifetime value is a common ceiling for acquisition cost.
- $1,020
What this assumes
- Gross margin, not revenue: lifetime value you cannot bank is not value.
Why this number matters
Knowing what a customer is worth over their life is what makes it rational to spend money winning one. For service businesses with maintenance work, the number is usually far larger than the first job suggests, which is exactly why the first job is worth doing well.
How it is worked out
- Lifetime revenue = average job value × jobs per year × years as a customer
- Lifetime value = lifetime revenue × gross margin %
- Sensible maximum to win a customer = lifetime value ÷ 3
The same formulas run in your browser as you type; nothing you enter is sent anywhere.
Customer records in Primemgr
Every contact, quote, job and invoice for a customer in one place. Customer records: how it works.
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