# What is one customer actually worth over their lifetime?

First-job revenue is the smallest part. Add repeat visits, referrals, and reviews — see why missing a single new-customer call costs more than you think.

Primary keyword: customer lifetime value calculator service business

## Methodology

- Direct CLV = first job + (repeat visits × repeat value).
- Referral revenue = referrals × 35% close rate × first-job value.
- True CLV = direct + referral (we don't include review SEO halo since it's hard to attribute).
- Repeat horizon assumed 5 years — adjust mentally if your trade has shorter or longer cycles.

## FAQs

### Why include referrals in CLV?

Because they're the bulk of the value. The BIA/Kelsey survey showed happy service-business customers refer 2.4 people on average. Forgetting referrals undervalues every customer by roughly 70%.

### Isn't 5 years arbitrary?

Yes — it's a useful planning horizon for service businesses. HVAC/plumbing customers stay 7-12 years; one-off remodelers might only repeat once. Adjust 'repeat visits' to your trade.