Day 2

Module 1: Foundation & Baseline

The Real Problem

Not all customers are created equal. A $12,000 hardwood job for a demanding homeowner who requires four site visits and two callbacks may be less profitable than a $6,000 LVP job for a builder who pays in 15 days and never calls back. Today you map your customer types by true lifetime value.

Today's Learning

The Four Customer Archetypes

Residential Luxury — Homeowners with budgets above $15,000 who want white-glove service, premium materials, and flawless installation. They pay premium prices but expect premium communication. Average ticket: $12,000–$30,000.

Residential Mainstream — The bulk of residential work. Budget-conscious but values quality. Needs financing options and clear timelines. Average ticket: $4,000–$10,000.

Builder / Developer — Volume buyers who prioritize price, speed, and consistency. Low margin per unit but massive volume potential. Average ticket: $2,000–$5,000 per unit across 10–200+ units annually.

Commercial / Property Manager — Office buildings, retail spaces, apartments. Values minimal disruption, durable products, and maintenance programs. Average ticket: $8,000–$50,000.

Lifetime Value by Segment

Calculate this for each customer type:

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Lifetime Value = (Average Ticket × Purchase Frequency × Years as Customer) 
                 - Cost of Acquisition - Service Cost

Example: A luxury residential customer who refinishes their hardwood every 5 years for 20 years, plus refers two neighbors:

• Initial installation: $18,000
• Refinishing x3: $12,000
• Two referrals: $36,000 in influenced revenue
• True LTV: $66,000+ over 20 years

Today's Action Steps

Step 1: Customer Segmentation (45 minutes)

Tag your last 50 jobs by customer type. Count jobs and total revenue per segment.

Step 2: Service Cost Analysis (30 minutes)

Estimate the time you and your team spend serving each customer type per job:

• Pre-sale consultations
• Installation management
• Post-install follow-up
• Callbacks and warranty
• Administrative overhead

Step 3: Target Customer Definition (15 minutes)

Write a one-paragraph description of your ideal customer. Include:

• Customer type and typical project
• Why they choose you (their primary buying motivation)
• What they are willing to pay a premium for
• How they find you

Day 2 Checklist

• Last 50 jobs segmented by customer type
• Service cost estimated per segment
• Ideal customer profile written
• Highest-LTV segment identified

Clozo Academy Proprietary Curriculum — The Flooring Business Growth System