Free tools for local businessesFree tool · Marketing budget
What’s a Customer Worth?
A new customer is worth more than the first sale. Work out what one is worth over the years they stay, and how much you can sensibly spend to win one.
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- Start from an exampleOr type your own numbers
- Adjust the numbersResults update live
- Set your budgetKnow your break-even
2What a customer is worth
Customer lifetime valueWhat a customer is worth
Example numbersBased on the HVAC example. Not real client data. Change any number to make it yours.
Lifetime value · one customerExample
$0
Lifetime revenue
$0
Lifetime profit
$0
Profit per year
Return on what you spend
0×
Break-even cost to win one
$0
spend more and you lose money
Comfortable budget (1/3)
$0
a common rule of thumb
Profit from one customer, year by year
Cumulative profitCost to win one customer
Lifetime revenue = average sale × purchases per year × years. Lifetime profit = lifetime revenue × margin. Return = lifetime profit ÷ cost to win one customer.