What is LTV?

LTV (customer lifetime value) is the revenue or profit one customer brings in over the whole time they do business with you.

Lifetime Value · Marketing Glossary · Updated

For clinics and subscription businesses with many repeat visits and purchases, LTV matters more than the first purchase. Knowing LTV tells you how much you can spend to win one customer.

LTV is raised through retention activities such as reminders about revisit timing, satisfaction management and suggesting the next service.

Formula

LTV ≈ average purchase amount × purchases per year × relationship length (years)

Sample If a customer spends KRW 100,000 on average, 4 times a year, for 3 years, LTV is about KRW 1.2 million.

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