Customer lifetime value (CLV) is the total profit or revenue a business expects to earn from a single customer over the entire duration of their relationship. It's a crucial metric for understanding customer loyalty, predicting future revenue, and informing business strategies like marketing and customer retention. CLV is calculated by considering factors like average purchase value, purchase frequency, and the average customer lifespan. 

What is a good customer lifetime value? For most businesses, your Customer Lifetime Value should be at least three times greater than your Customer Acquisition Cost (CAC).

We charge $25 per month ($250) per year to JoinNYDLA.org. That covers the first 9 people in a company, or people on a team, or in an organization. If they have 10 to 99 people, we charge $250 per month. If they have 100 or more people, we customize the membership fee. We make sure that the ROI of our membership is high, so that cancellations are rare. NYDLA.org membership cancellations are not zero, but they are very rare. It's really just about math at this point. We guarantee a 10X ROI on membership dues, or we make up the difference. So why leave us, right? 

This past weekend, we stayed at a Red Roof in Guilford Connecticut. Normally, we would stay at a Hilton property. Hilton has been our 'go to' ever since I can remember. I have earned Hilton Honors points with every stay, ever since my kids were little. We would also book rooms at Embassy Suites for birthday parties and sleepovers. It was always a Hilton Property.

This weekend it was Red Roof because they just became an NYDLA sponsor. NYDLA.org/RedRoof and I got 20% off - plus I earned points to get a free room. And a free bottle of water (two) on check-in. And, I got $25 in Uber Eats as a first-time guest. So, all in, the Capone family saved around $150 for the one night stay (two rooms). Red Roof has their own loyalty program / rewards program - and now I'm in that.

Where am I going with this? My CLV journey with Hilton might be over. My CLV journey with Red Roof has just begun. Will I ever stay at a Hilton property again? Yes, as I have Hilton Honors points to use up before they expire. But my new 'go to' will be Red Roof whenever possible.

What is (your) CLV with AT&T, Verizon and T-Mobile? Do you ever leave one carrier for another? Or how about your local grocery store? Or Amazon.com vs. Walmart.com vs. Costco.com? How about Disney+ or Netflix? Do you ever do 'the math' when you sign up (or cancel) a subscription service or it is an emotional decision?

Where do you buy gas? Do you make gas purchase decision based on brand, or is it based on your gas gauge and how far you are from home? 

It might be time to rethink the entire CLV analysis. Not sure you can do much about it anyway, right Hilton? 

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