CLV (Customer Lifetime Value)

What is a CLV (Customer Lifetime Value)?

Formula: Average Revenue Per User (ARPU) × Gross Margin × (1 / Customer Churn Rate)

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Predicts the total revenue a business can expect from a single customer account throughout the business relationship. For instance, a Netflix subscriber paying $15/month who stays for an average of 5 years has a CLV of $900. Companies use CLV to determine how much they can afford to spend on customer acquisition and retention. Subscription businesses like Spotify and Adobe heavily rely on CLV metrics to shape their business strategies.

How do you calculate CLV accurately?

Calculate CLV using historical purchase data, customer behavior patterns, and retention rates. Consider factors like acquisition costs, purchase frequency, and customer lifespan for accurate CLV prediction.

What factors impact CLV?

CLV is influenced by purchase frequency, average order value, customer retention, and engagement levels. Market conditions and customer satisfaction also affect long-term value.

How do you increase CLV?

Increase CLV through customer engagement programs, personalized experiences, and loyalty initiatives. Focus on retention strategies, upselling opportunities, and customer satisfaction.

Ready to get more customers for your SaaS?

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Founder, Forgematic

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Owner, Biosol Organics

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CEO, A&J Education

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Owner, Social Slingshot

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""Mitch knows Google Ads really well and he is super responsive. He is good because he thinks about more than just driving traffic. He's on the case in terms of making sure landing pages are well optimised and everything's set up to obtain as many customers as possible.

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Owner, Brand Vine

"Mitch is extremely talented and has achieve stellar result for us unachievable through previous managers. Mitch is also right on to new Google trends and requirements which is honestly very rare we’ve found."

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Practice Manager, DLG

""Working with Mitch from Ads That Convert has been a game-changer for our startup. He helped us iron out dozens of issues we were having with our Google Ads - from small misconfigurations to major oversights.

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Founder, Fillout

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Co-Founder, Senja

Who is this for?

My services will turn on a tap of consistent flowing leads but it’s not for everyone. We’re likely a fit for each other if you’re:

A SaaS businesses that need more customers

If your SaaS company needs qualified users who are ready to become paying subscribers, I can optimize your Google Ads to deliver consistent leads.

Turning over of at least $20k/mth in revenue

I’ll use Google Ads to pour fuel on the fire. We need to know you have product market fit to be confident that you have a service that people are going to buy.

Have a strong retention rate

New users are great but we need to know that they will stay long enough to generate profit from their LTV.

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