Sometimes, running a cleaning business feels like throwing darts at a board.
Except the board is spinning. And all the darts are bent. Oh, also, you are blindfolded.
These questions probably pop into your head:
- “Am I pricing my services right?”
- “How much time is this client worth?”
- “How do I know how much my business is really worth?”
At the end of this post, I’m going to give you a free tool. With this tool you will be able to answer ALL of those questions. You will be able to rip off the blindfold, walk up to the board, and stick that dart right in the bull’s eye.
But first, let’s talk about Client Lifetime Value – and why this is a “must-know number” for anyone with a cleaning business…
What “Client Lifetime Value” Does for You
Client Lifetime Value (or CLV) will put a concrete dollar value on all of your clients. This is powerful because it allows you to:
- Know how much to spend to acquire more clients
- Know how much to spend to keep existing clients (this is critical)
- Allows you to “see” how much your Cleaning Business is really worth
Most owners don’t know how to judge their own companies. They look at how many jobs they do per month, or how much revenue they generate, etc.
Let me be clear: these are good numbers to know. But they won’t tell you where you need to improve the most.
Finding out your Client Lifetime Value will show you – with a measurable dollar value – how important it is to focus on relationships with your clients.
Free Calculator for Cleaning Client Lifetime Value
To use the calculator, you need a few pieces of basic information; the formula is a little complex, so I won’t write it out here.
Any good scheduling software (like Service Autopilot) will give you the numbers, so you don’t have to fish them up yourself.
One last thing to take note of with this calculator: in some cleaning markets, different clients have different lifetime values. For example, Neighborhood A has houses that sell for 200k. Neighborhood B has houses that sell for 700k+.
You can safely assume that residents in Neighborhood B are worth more than those in Neighborhood A. Therefore, you can spend more money acquiring/keeping them.
If you have an obvious divide in your clientele, segment them. Do not overlap the segments. This way, you can keep your data clean and useful.
Go use it now. Write those numbers out and paste them on the wall somewhere you can see them.
The next time you ask, “How do I know if this client will make me money?” you will have a REAL answer.
Patrick Hoffman is the lead marketing writer for Service Autopilot. He writes about growing healthier Service Businesses - primarily for the Lawn Care, Landscaping, and Cleaning Industries. When he's not writing, he's probably reading: books on marketing, self-improvement, or science fiction. Contact Patrick: firstname.lastname@example.org