Free toolWhat's a customer
What's a customer
actually worth?
Most local businesses price marketing against a single job, not a customer relationship. See the full picture, and what you can afford to spend to win one. Then check that spend against the marketing budget calculator.
$
Below 1 for infrequent services (e.g. a roof), above 1 for recurring ones (e.g. HVAC maintenance, salon visits).
yrs
%
A happy customer who refers 1 friend of similar value roughly doubles (+100%) what they're worth to you.
%
A common healthy target is spending 15-25% of a customer's lifetime value to acquire them.
Customer lifetime value
$3,600
$2,400 direct + $1,200 from referrals
What you can afford to spend to win one
$720
per new customer, at your target of 20% of lifetime value.
A simplified lifetime-value model (job value ร frequency ร years, plus a referral estimate) - useful for budgeting decisions, not an accounting figure.
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