Leads and follow-up. Reviewed October 29, 2026
Customer lifetime value
Also called: CLV, LTV
Customer lifetime value is the total revenue, or profit, one customer brings over every job they book, which is why a maintenance plan customer is worth far more than a one-time repair.
In practice
An HVAC customer on a maintenance plan is two visits a year for ten years plus the replacement at the end. Priced that way, the first tune-up can be given away. Priced as one job, it cannot.
Compare it to acquisition cost. A ratio of three to one or better is a business that can afford to grow.
Related terms
- Customer acquisition costCustomer acquisition cost is total sales and marketing spend over a period divided by the number of new customers won in it.
- Average ticketAverage ticket is the average revenue per completed job, and it is the number that decides how much a business can afford to pay for a lead.
- Cost per acquisitionCost per acquisition is what it costs in marketing to win one paying customer, which for a contractor means a booked and completed job, not a lead.
Go deeper
More leads and follow-up terms
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