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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