The total revenue you earn from one subscriber over their whole subscription.
What is customer lifetime value
Customer lifetime value, shortened to LTV, CLV or CLTV, is how much revenue a subscriber brings in from their first order until they cancel. It’s the main measure of how healthy a subscription business is.How to calculate LTV
A simple formula for subscriptions: LTV = average order value × average number of orders per subscriber For example, subscribers who pay €30 per order and stay for 8 renewals on average have an LTV of €240. You can also divide average order value by your monthly churn rate to estimate LTV for monthly plans.How to increase LTV
- Keep subscribers longer with a cancellation flow, skips and pauses instead of cancellations, and loyalty rewards.
- Raise order value with upsells, add-ons and build-a-box.
- Recover failed payments with dunning.