Answer:
a. What is the monthly margin generated by a new membership (don’t include training)?
$78, since there are no variable costs
d. What is the total CLV for a new member?
the average purchase value = $78 + (15% of customers x 30/26 sessions per month x 50% earnings x $40 per session) = $78 + $3.46 = $81.46
the average purchase frequency = 1 per month
average customer value = $81.46 / 1 = $81.46
average customer lifespan = 26 months
customer lifetime value = average customer value x average customer lifespan = $81.46 x 26 = $2,118
b. What is the CLV to WACI on the membership component?
$78 x 26 = $2,028
c. What is the CLV of the personal training component for a member who chooses to hire a trainer?
$3.46 x 26 = $89.96
e. What would be the net value of implementing a program that doubled the likelihood that a person would hire a personal trainer?
$3.46 per customer, same as the CLV of the personal training component
