How This Applies to Home Care Marketing
CLV in home care is substantial, which justifies significant acquisition investment. A client receiving 20 hours weekly of care at $28/hour generates $2,240 monthly. If average client tenure is 18 months, that’s over $40,000 in lifetime value. Even at $2,000 CPA, that’s a 20:1 return on acquisition investment.
Understanding CLV by service type and client segment helps prioritize marketing. If dementia care clients stay longer on average than companion care clients, attracting dementia care families may warrant higher acquisition costs. CLV analysis reveals which client types are most valuable to pursue.
Key Takeaway
Calculate CLV by service type and referral source. Use this to inform acceptable CPA—you can afford to pay more to acquire high-CLV clients. Also invest in retention strategies, since even small improvements in retention duration dramatically increase lifetime value.