What is a client LTV?
A clients life time value is the average length of time your clients stay with you. For example, if on average clients stay with you for 12 months and they pay you ยฃ100 a month. Your client LTV will be ยฃ100 x 12 = ยฃ1200.
How to increase a clients LTV?
There are multiple ways you can increase the LTV of your clients.
- If you know clients often leave after 12 months, jump in and offer them something different in month 10 or 11 to encourage them to stay with you before they even consider leaving. This will help change their mindset so they stay with you beyond the 12 month mark.
- Another approach can be to increase the amount of revenue you generate from each client in that 12 month period. For example, if you know a client generally stays with you for 12 months, try and sell 4 t shirts to them in that time at ยฃ25 each. You then generate an extra ยฃ100 revenue from that client in those 12 months.
Let us know in the comments which methods you use to increase LTV or if youโre not already doing this, go and give it a go ๐