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Customer Lifetime Value (LTV) · Engineering Firms

Customer Lifetime Value (LTV) for Engineering Firms.

The total revenue a customer is worth.

Engineering practices, engineered to scale.

Finance & Strategy · Engineering Firms

Why engineering firms operators use the customer lifetime value (ltv).

Calculate customer lifetime value using average order value, purchase frequency, gross margin, and customer lifespan. LTV is the foundation for pricing, CAC budgets, and retention investment.

Engineering firms — civil, structural, mechanical, electrical — are professional services businesses with unique constraints: project-based revenue, deep specialization, and complex stakeholder management. SAZ helps engineering firms scale revenue, productize services, and embed AI across project delivery.

Benchmarks

What good looks like — typical ranges to compare against.

< 1× CAC
Losing money
1–3× CAC
Recovering — but tight
3–5× CAC
Healthy SaaS / DTC benchmark
> 5× CAC
Elite — invest more in acquisition
The formula

How customer lifetime value (ltv) is calculated.

LTV = AOV × Purchase frequency × Gross margin × Customer lifespan
Industry context

What changes when customer lifetime value (ltv) is applied to engineering firms.

Project-based revenue volatility

Productization of recurring services

Talent leverage and utilization

Document, drawing, and report production

Run the numbers

Open the customer lifetime value (ltv).

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Open Customer Lifetime Value (LTV)
Customer Lifetime Value (LTV) · Engineering Firms

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