Client Lifetime Value (LTV)
Understand the financial value of your client relationships and make data-driven business decisions.
What is Client LTV?
Client Lifetime Value (LTV) measures the total revenue a client generates throughout their relationship with you. Understanding LTV helps you make informed decisions about client acquisition, retention strategies, and pricing.
Historical LTV
Revenue already earned from subscriptions, packages, and sessions
Projected LTV
Estimated future revenue based on current engagement and patterns
Revenue Components
Historical LTV is calculated by summing all revenue streams from a client:
Subscriptions
Recurring monthly or annual subscription payments. Each billing cycle adds to the client's historical LTV.
Packages
One-time package purchases (e.g., 10-session bundles). The full package value is counted when purchased.
Individual Sessions
Pay-per-session bookings. Each completed session adds its value to the historical LTV.
Pro Tip
LTV Tiers
Clients are automatically categorised into tiers based on how their LTV compares to your average:
High Value
LTV is 1.5× or more above your average
Medium Value
LTV is between 0.5× and 1.5× of your average
Low Value
LTV is below 0.5× of your average
Projected LTV Calculation
Future LTV is estimated using several factors:
Average Monthly Revenue
Client Tenure
Engagement Score
Recent Activity
Pro Tip
Using LTV Data
Retention Focus
Prioritise retention efforts on high-LTV clients who show declining engagement. Losing them has a greater business impact.
Pricing Decisions
Understanding average LTV helps you price packages and subscriptions appropriately for your market.
Acquisition Strategy
Knowing your average LTV helps determine how much you can invest in marketing to acquire new clients profitably.
Service Development
Analyse what high-LTV clients have in common to develop services that attract similar clients.
LTV Summary Metrics
The LTV dashboard provides aggregate metrics across your entire client base:
| Metric | Description |
|---|---|
| Total Historical LTV | Sum of all revenue earned from all clients |
| Total Projected LTV | Estimated future revenue from current clients |
| Average Client LTV | Mean LTV across your client base |
| Top Clients | Your highest-value clients ranked by total LTV |
| Tier Distribution | Breakdown of clients by high/medium/low tiers |
Privacy & Data
Financial Data Security
LTV calculations use only transaction data already processed through the platform. Financial information is visible only to you and is never shared with clients. All data is encrypted and stored securely.