LTV (Lifetime Value)
The total revenue a single customer generates over their entire relationship.
LTV (Lifetime Value) tells you how much revenue one customer generates on average throughout the entire customer relationship. It's calculated as: average purchase value × number of purchases × relationship duration. Understanding LTV helps determine how much you can spend on acquisition.
Example
If a client pays $200/month and stays for an average of 6 months, LTV is $1200. You can spend up to $200 to acquire one client.
Discover your growth potential
Free 2-minute assessment for coaches
Start the test