Customer Lifetime Value

Customer Lifetime Value


But how do you calculate their value?

Understanding the lifetime value of each customer, will help your HVAC business understand how much to invest in new customer acquisition. Within the HVAC industry, lifetime value can vary depending on the services needed, and whether the customer is a residential, or a commercial account. Determining lifetime value is as simple as calculating how much a customer will spend within a designated amount of time. For this example I will be using typical air conditioning services for an average customer. According to a recent study on, The average homeowner stays in their residence for 13 years. It is also recommended that a homeowner have their AC unit inspected once a year to ensure peak performance. On average an AC unit will last around 15 years even with routine maintenance. According to, customers have reported spending between 4 and 7 thousand dollars for a new AC unit, and between 70 and 100 dollars for a yearly inspection. With this information we can calculate how much the average customer is worth within a 15 year time span.

Customer length of 15 years x 1 new unit ($5500) and 15 yearly inspections of $85. Using this formula we can calculate that each new customer will on average spend $6775, on Air conditioning services alone within a 15 year period! Understanding lifetime value for each service offered is an important part of determining how much of your budget should be allocated to targeting specific customers with specific services, and help improve your bottomline.

  • Do you know how much your average customer is worth?
  • Do you have plans to increase your customer value?
Contact your HVAC Growth specialist to learn about automating your HVAC business.

Step 1: Track your customers.

If you’re like most HVAC business owners who have been around for a while, you most likely have had some repeat customers. If you compile what the average customer spends with you on a yearly basis, you can calculate just how much each customer is worth.

Step 2. Plan ahead.

If you need to increase your customer value, it may be time to start marketing to the bigger ticket services to increase cash flow. Utilizing other digital marketing techniques to reel in the larger jobs, is exactly what you need.

HVAC Growth is committed to helping owners, nation-wide, increase revenue through digital strategy and customer-retention.

Contact your local HVAC Growth Specialist for more information!