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Lead recovery & response

Home Service Customer Lifetime Value Calculator

A home-service customer is rarely worth one invoice. Work out what they are worth across the years, and what their referrals add.

Your numbers

$
jobs
yrs
%
referrals
Average number of new customers each customer sends you over their lifetime.
%

Result

Lifetime value with referrals $7,083
Direct lifetime revenue $5,208
Referral value $1,875
Lifetime gross profit $3,187
One customer is worth $7,083 over 6 years, $3,187 in gross profit. Referrals add $1,875 of that.

Referral value counts one generation only. Counting referrals-of-referrals compounds quickly and produces numbers that flatter more than they inform.

See review automation

Questions

About this calculator

How do I find my real retention period?

Pull customers who first bought five years ago and check how many still appear in your system. That gives a far more honest number than an estimate from memory.

Is referral value real revenue?

Yes, but it is the softest input here. If you do not track referral source, set it to zero and treat the direct figure as your working number.

Why does CLV matter for a small contractor?

It sets the ceiling on what you can afford to spend to win a customer, and it makes the case for spending on retention rather than only on new leads.

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Retention is a follow-up problem

Customers do not leave. They forget. Reactivation and review automation keep you in front of them.