LTV (Lifetime Value)

What is LTV (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 an LTV of $900. Companies use LTV to determine how much they can afford to spend on customer acquisition and retention. Subscription businesses like Spotify and Adobe heavily rely on LTV metrics to shape their business strategies.

How do you calculate customer LTV accurately?

Calculate customer LTV by analyzing average purchase value, purchase frequency, and customer lifespan. Consider factors like gross margin, retention rates, and revenue expansion. Use cohort analysis to refine LTV predictions across different customer segments.

Why is LTV important for business growth?

LTV guides customer acquisition spending, retention strategies, and product development. It helps businesses optimize marketing budgets, identify valuable customer segments, and improve profitability through targeted engagement strategies.

How can businesses increase customer LTV?

Increase LTV through customer engagement programs, personalized experiences, and strategic upselling. Focus on reducing churn, enhancing customer satisfaction, and creating loyalty programs that drive long-term value.

Ready to get more customers for your SaaS?

Book in a call and I’ll show you how I’d scale your acquisition with Google Ads for your product.

"Mitch is super competent and most importantly produces results. My campaigns are at a 4x ROAS!!"

Cathy Paraggio

Owner, NoNetz

"Hiring Mitch has been one of the best decisions I've made for my business this year. Mitch's ability to diagnose wasted ad spend, understand new industries, and make suggestions to lower costs has really helped myself and clients succeed."

Jordon Chavis

Founder, Forgematic

"From the minute we started the project, the in-depth research that was put into it impressed me. Off the bat performance was strong. Then, as we continued to run ads, they didn't just set it and forget. Amazing team, amazing results."

Bob Thompson

Owner, Biosol Organics

"It's been a true pleasure working with Mitch. We are delighted with the landing page delivered—specifically, the attention to detail, quick turnaround times, and great communication."

Menachem Ani

Founder, JXT Group

"Mitch is a fantastic PPC marketer. He is a no-nonsense, straight-to-the-point marketer who really delivered for us on our campaign. Mitch took full ownership of the entire project, maintained excellent communication throughout, and delivered results.I highly recommend working with him!"

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CEO, A&J Education

"Responsiveness was amazing and we were able to get everything resolved.I spent hours on google support trying to figure it out, shoulda just paid Mitch to start with... so many headaches solved at once!"

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Owner, Social Slingshot

"Mitch is definitely a sharp operator, and very knowledgeable. Certainly would recommend."

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IT & Technology Manager, Amtech

"Mitch has been great to work with, he really takes charge and gets stuff done without a lot of handholding, which is great!We'd highly recommend him to anyone looking for a PPC bad ass who knows their stuff."

Dave Batchelor

Founder, DialMyCalls

""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.

Ed Forrester

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."

Jacob Reichman

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.

Dominic Whyte

Founder, Fillout

"The level of detail and insight that Mitch shared was mind-blowing. He's extremely knowledgeable and responsive.Went from feeling completely confused and wasting money, to having an immediate and clear plan of action."

Oliver Meakings

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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