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.

    Want this handled, not explained?

    Skill Mammoth builds the site you own, gets you found on Google and ChatGPT, and texts every lead back in under 60 seconds. Month to month, every price published.