Customer lifetime value

Not every customer deserves a seat at your table.

Harsh? Maybe.

True? Absolutely.

Because not all revenue is good revenue,

And not all customers are worth keeping.

Some drain your team,

Push for discounts,

Refuse to be a partner,

And treat your business like a vending machine—

Drop in a coin, demand instant results.

And then there are the others.

The ones who stick around,

Who get the value,

Who grow with you,

Who don’t just buy once—

They buy in.

How do we evaluate who is who?

With one of my favorite metrics:

Customer Lifetime Value (CLV):

• (Current monthly revenue - current monthly cost to serve) * # of months they'll stay

• + (Future revenue potential - Future likely costs) * % chance they'll actually get there

• + Incremental value they add to the business [logo, referrals, etc.] - cost to mental health

Aka. The difference between chasing transactions,

And building a business.

If you’re not prioritizing your best customers,

You’re spending time, energy, and money on the wrong ones.

Want higher profits?

Want smoother operations?

Want a business that feels easier to run?

Start treating your BEST customers like your ONLY customers.

And let the rest fade into someone else’s problem.

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