The real math behind a $9/mo maintenance customer
A customer pays $9/mo for the Priority Protection Plan. Sounds like nothing. Here's the real math from my Johnston Air books: - $108/year direct revenue - 84% retention year over year - Average tenure: 11 years - Lifetime PP revenue: ~$1,188 But that's not the real number. Of those PP customers over 11 years: - 22% replaced a full system through us (~$8,400 average install) - 38% added another zone, ductless head, or upgrade (~$2,200 average) - 91% used us for service calls vs. shopping around Real LTV from one $9/mo membership: $3,800–$4,500. This is why recurring matters more than people think. It's not the $9. It's the 11-year relationship that the $9 buys you. Are you running a maintenance program? What's your retention rate?