{"id":17446,"date":"2019-06-17T17:25:24","date_gmt":"2019-06-17T17:25:24","guid":{"rendered":"https:\/\/www.conachmarketing.com\/?p=17446"},"modified":"2019-06-17T17:25:30","modified_gmt":"2019-06-17T17:25:30","slug":"construction-marketing-clv","status":"publish","type":"post","link":"https:\/\/www.conachmarketing.com\/index.php\/2019\/06\/17\/construction-marketing-clv\/","title":{"rendered":"Is construction marketing CLV important?"},"content":{"rendered":"\n

Customer Lifetime Value (CLV), a calculation of the value of the lifetime value of a customer to your company, is essential to many industries. For example, a manufacturer that produces parts or equipment understands how much a long-term customer means to its future revenues. However, does CLV in construction marketing matter? After all, the customers of a construction company do not make yearly purchases. I think that it is essential for construction companies to determine construction marketing<\/a> CLV for several reasons. In this blog, I will cover those reasons.<\/p>\n\n\n\n

Construction Marketing CLV does exist<\/strong><\/h4>\n\n\n\n

First of all, every\nconstruction company that I have worked with gets repeat business. Now, I don\u2019t\nbelieve those construction marketing clients were just exceptionally lucky.\nInstead of relying on good fortune, they completed the build as promised and\nmaintained good relationships with clients \u2013 more on that later. When reviewing\nconstruction marketing CLV, you need to look at each market you work in\nseparately. This approach will allow you to calculate an average CLV for each\nmarket, whether its medical, education, retail, or industrial.<\/p>\n\n\n\n

Construction Marketing CLV helps with planning<\/strong><\/h4>\n\n\n\n

Because you have\ndetermined the average CLV of each market, you have valuable information to\nimprove your marketing planning accuracy. With this factor in mind, let\u2019s look\nat how you can utilize CLV in construction marketing. To begin, it helps you\ndecide which markets to emphasize in your sales and marketing efforts. To\nclarify, let\u2019s say you find that the industrial market has more repeat business\nbecause of frequent additions or renovations. Now you know to pursue that market\nmore vigorously than the church market, which only has projects once or twice\nin a decade or more.<\/p>\n\n\n\n

Cnstruction marketing CLV allows you to understand the true ROI of your marketing program. Often, construction clients only look at yearly returns or what projects are in the pipeline. By knowing the average CLV, you will soon realize that ROI needs to be a long-term view, especially concerning the cost of acquiring a customer. Taking this perspective means you make better use of marketing budgets and establish more accurate sales goals. <\/p>\n\n\n\n

\"\"
The graphic illustrates a way to calculate construction marketing CLV.<\/figcaption><\/figure><\/div>\n\n\n\n

Making Construction Marketing CLV work<\/strong><\/h4>\n\n\n\n

In general, happy\ncustomers mean you will build a good reputation and earn more business.\nHowever, achieving these relationships takes more than completing the project\nsatisfactorily. To grow construction marketing CLV, you need to have a program\nwhere you keep in regular contact with customers. Our agency helps construction\nclients accomplish this through programs that include social media, direct\nmail, and e-blasts. These programs assure you are at the forefront when a\nclient needs construction services.<\/p>\n\n\n\n

How to calculate Construction Marketing CLV<\/strong><\/h4>\n\n\n\n

Finally, after all this\ntalk about CLV in construction marketing, you should know how to calculate it.\nHere are the steps to calculate the average CLV for an individual market.<\/p>\n\n\n\n

One: Set an amount for\nthe purchasing cycle you will use for the CLV calculation (The number of times\na client uses your services in a set number of years)<\/p>\n\n\n\n

Two: Review several\nprojects within the market to come up with an average price per project.<\/p>\n\n\n\n

Three: Determine the\naverage number of projects within the established purchasing cycle.<\/p>\n\n\n\n

Four: Review your\ncustomer history to determine the average time a customer stays with your\ncompany of their lifespan.<\/p>\n\n\n\n

Five: Multiply the\naverage cost per project by the number of projects within the purchasing cycle.\n<\/p>\n\n\n\n

Six: Multiply that number\nby the average lifespan of a client. Now you have the average CLV of that\nmarket.<\/p>\n\n\n\n

Seven: Take your average\nprofit margin for this market out of the CLV to further refine the CLV.<\/p>\n\n\n\n

To sum up, construction marketing CLV is viable and valuable. It helps you to realize which markets generate the most sales, shows you the real return on your sales and marketing, and demonstrates why you need to value every customer.<\/p>\n\n\n\n

About the Author<\/strong><\/h4>\n\n\n\n

Paul Kowalski (or Pappy as he is called around the office) spent over two decades working at other agencies before opening Conach Marketing Group in 2008. The early part of his career was working with Fortune 500 clients at different agencies. However, working with smaller clients was his preference. This choice was because of the impact on a client\u2019s business growth and forming closer, personal relationships.<\/em><\/p>\n\n\n\n

About Conach<\/strong><\/h4>\n\n\n\n

When he was creating Conach, his goal was to bring those Fortune\n500 strategies along with years of B2B marketing experience to small business\nmarketing clients. As a result of focusing on business to business marketing,\nConach specializes in <\/em>construction marketing<\/em><\/strong><\/a>, <\/em><\/strong>financial marketing<\/em><\/strong><\/a>,<\/em><\/strong> and\n<\/em>industrial marketing<\/em><\/strong><\/a>. Even though\nwe are in Mid-Michigan, Conach provides marketing services to clients across\nthe country.<\/em><\/p>\n\n\n\n

For more information visit <\/em><\/strong>conachmarketing.com<\/em><\/strong><\/a> or <\/em><\/strong>contact us<\/em><\/strong><\/a> or call 989.401.3202.<\/em><\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":"

Customer Lifetime Value (CLV), a calculation of the value of the lifetime value of a customer to your company, is essential to many industries. For example, a manufacturer that produces parts or equipment understands how much a long-term customer means to its future revenues. However, does CLV in construction marketing matter? After all, the customers […]<\/p>\n","protected":false},"author":2,"featured_media":17448,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[457],"tags":[],"class_list":["post-17446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction-marketing-blog"],"yoast_head":"\nConstruction marketing CLV - Conach Marketing Group<\/title>\n<meta name=\"description\" content=\"Conach Marketing Group has workedwith over 40 construction marketing clients. 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