Lifetime Value
Customer Lifetime Value (LTV) measures the total revenue a customer generates over their entire relationship with your business. Understanding LTV helps you make better decisions about acquisition, retention, and service.
LTV Calculation
Bookora calculates LTV using the following formula:
LTV = Average Order Value × Purchase Frequency × Customer Lifespan
Average Order Value (AOV)
The average revenue generated per appointment or service purchased.
Purchase Frequency
How often a customer purchases services from your business in a given time period.
Customer Lifespan
The average length of time a customer continues to do business with you.
Revenue Impact
Increasing customer lifetime value has a direct impact on your business:
| Strategy | LTV Impact | Revenue Impact |
|---|---|---|
| Improve retention by 5% | +25% | +25-95% |
| Increase frequency by 10% | +10% | +10% |
| Increase AOV by 10% | +10% | +10% |
Improving LTV
Bookora helps you increase LTV through:
- Automated follow-ups — Keep customers coming back with timely re-engagement sequences
- Review requests — Generate social proof that attracts repeat customers
- Referral programs — Turn loyal customers into a growth channel
- Personalized offers — Recommend services based on past purchases
- Retention campaigns — Win back customers at risk of churning
Tracking LTV in Dashboard
Your Customer Intelligence dashboard displays:
- Average LTV across all customers
- LTV by customer segment
- LTV trends over time
- Top customers by LTV
- LTV distribution (how many customers at each LTV level)