How do you calculate the customer lifetime value in a services business?
The Lifetime Value of a customer in a service company is what one given customer will spend with your company. For example, let us say you have a lawn-care business and the typical customer spends $1200 per year and you have the potential to serve someone 15 years on average that would be an LV of $18,000.
As someone who has made millions in the service industry, do not take the lifetime value of a customer for granted as once you made a happy customer they will come back over and over. I have 20,000+ happy customers (gathered over 20 years) that on the low end spend 5,000 with our company and many reach 50k or above.
