Commercial Roofing - Customer Lifetime Value Overview as related to Roofing. Understand the difference between successful multi-million dollar roofing companies and your typical roofer. Qualified Commercial Roofer Marketing can help you accomplish the jump from a typical to a successful roofer.

1. What is Customer Lifetime Value?
By: Lateef Farooqui

2. Customer Lifetime Value
CLTV attempts to determine the economic value
a customer brings over their “lifetime” with the
business.

3. Single vs. Multiple Transactions
vs.
To understand CLTV
you must recognize
that a customer
represents more than
just a singular
transaction.

4. Lifetime Value Cycle
“Rather it’s a
relationship that is
far more valuable
than any one-time
exchange.”

5. Why does this matter to a Commercial Roofer?
By: Lateef Farooqui

6. Commercial Roofers Value
CLTV is important to Roofers that want to
increase revenues, decrease costs, stabilize
income, predict revenues, and perhaps even sell
their business.
“Secure the future profits of your
business, by securing your past
and present clients”

7. Cost to Retain Customers
Typically it costs less than $15 per year to maintain a
customer with no additional revenues.*
Customer roofs generally mature to next full-replacement
within 10 years or a $150 total budget for next sale!
Service and Maintenance Agreement work can offset this
cost and actually become a sustainable source of income for
your operations.
*Based on 1000 roofs (lifetime) and a $15,000 year budget for customer retention.

8. The Difference Between Roofers
Typical
Successful

9. Typical Roofing Sale Cycle
New customer’s are the
most expensive ones to
acquire and service:
• Full Sales Commissions Costs
• New Lead Generation Costs
• Require Most Support

10. Successful Roofing Sale Cycle
Existing customer’s are the least
expensive ones to acquire and
service:
• Partial or No Sales Commissions
Lead Nurturing Costs are min.
• Require Less Support
• Service Call Revenues
• Maintenance Agreement Revenues
• Partial Replacements
• Referral Business

11. Retention Rate (RR)
Take the number of customers
from last year who are still
customers this year
(i.e. if you had 100 customers
last year and 45 are still
doing business with you this
year, then your retention rate
would be 45%).
Do you know your RR?

12. Reasons Roofers Don’t Build a System
•
•
•
•
•
•
•
Time
Budget
Knowledge
Systems
Technology
Expertise
Management
Without the above Contractors don’t even know where to start.

13. Find out more…
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