Client Lifetime Value
Client lifetime value is the total a client is likely to spend with you over the whole relationship. A smaller first job from a good client is often worth more than it looks.
What it means
A single job has a price. A client has a value that is usually bigger. It includes the maintenance visits, the referral to a neighbour, and the bigger renovation two years later. Think only about the job in front of you. A modest first job then looks like a waste of effort. The relationship behind it is worth far more over time.
You do not need a spreadsheet formula to use this. The practical version is simple. Give a first-time client’s small job the same care as a big one. A good first experience is what brings the second and third job, and the referral that comes with them.
A client’s first job with you is a $180 repair. Over the next three years, they book you for two more repairs and a $2,200 renovation. They also refer a neighbour who becomes a $4,000 client. The real value of the $180 job was never $180.
Deprioritising small first-time jobs because the number on that one invoice looks unimpressive. The same client’s lifetime value, with referrals, can be one of your biggest.
See also
Where this shows up
Want this in one place?
BizBinder keeps quotes, jobs, invoices, and follow-ups in one binder.
You are on the list.
A person reads every request. You will hear from us within one business day.
- 01 A person reads your note — not a queue.
- 02 You get an invite as spots open.
- 03 Your admin starts filing itself.
The free library is open while you wait. Nothing in it needs an account.
- guide What to do after the job — the follow-up that wins the next one One routine covers the thank-you, the review ask, and the referral ask.
- tool Client follow-up planner Enter the date a job finished. You get six follow-ups as real dates: thank-you, review ask, nudge, referral, check-in, and win-back. Copy them or add them to your calendar.
- tool Job profit check Enter the price you charged, your direct costs, and the hours the job took. Hours include site, travel, quoting, and admin. The tool shows the real hourly rate against your target.