How do I calculate customer lifetime value so I know what I can spend to get a job?

Multiply your average job value by how many times a typical customer buys from you, then add the referrals they send. An HVAC customer with a $450 average ticket who calls twice a year for eight years is worth roughly $7,200, not $450, and that larger number is what your marketing spend should be measured against.

Once you know lifetime value and your gross margin, you can set a maximum allowable cost per booked job. Contractors who only look at the first ticket almost always underspend and lose the market to whoever is willing to pay more for the same customer.

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