The average lifetime value of a client is an important key performance indicator (KPI) for your business. In this video, we demonstrate how to calculate this useful metric. Cleaning Business Today publisher and co-founder Tom Stewart also shares information on other important metrics you'll want to pay attention to throughout the course of your business.
Tom Stewart and his wife, Janice Stewart, are co-owners of Castle Keepers, the first company to achieve CIMS certification. Tom is a nationally recognized leader and innovator in the house cleaning industry. Tom is co-founder and publisher of Cleaning Business Today. To find out more about Castle Keepers, click here.
FAQs
A: Customer lifetime value is a management measure that helps a residential cleaning company understand performance, compare periods, and make better operating decisions.
A: Use consistent data from the same reporting period, apply the formula described in the article, and document which revenue, clients, jobs, or employees are included so results remain comparable.
A: It connects day-to-day activity to profitability, capacity, retention, or growth and can reveal problems before they become visible in the financial statements.
A: Review it at least monthly. High-velocity measures such as revenue, leads, jobs, labor, and staffing may also need weekly monitoring.
A: Confirm the data first, identify the operational driver behind the change, assign one corrective action to an owner, and monitor the next several reporting periods before drawing conclusions.
