Learn more about optimizing your LTV
Posted: Thu Mar 27, 2025 9:34 am
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Written by Debra Weinryb, Content Strategist at Diff Agency
This article originally appeared in the Diff Agency blog and has been published here with permission.
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How to increase subscriber lifetime value
by
Steve Hutt
10 minute read
how-to-increase-subscriber-lifetime-value
In This Article
Customer lifetime value definition
The four key levers of lifetime value
Results
How to increase subscriber customer lifetime value
Customer lifetime value, often abbreviated as CLTV or LTV seems self-explanatory: the total profit you make from an average customer between their first and last purchase.
While the definition is straightforward, calculating it and understanding how to optimize and increase it can be more challenging. You need to strike a balance that’s right for your business by adjusting four key levers that affect LTV.
But at the end of the day, the secret to being more profitable is happy customers. The purpose of all these concepts and formulas is to help you find more efficient and effective ways to do so.
Customer lifetime value definition
LTV refers to the total profit you earn from the average customer over the course of time they’re engaged with your service, or over a specified timeframe.
It’s calculation most often associated with subscriptions because it’s relatively easy to see how much a customer has spent with you until the time they cancel. However, LTV can also take into account things like one-off purchases during a specific time period.
Read our latest:
How We’re Building a Positive Company Culture While Working Remote
Connect With Your Customers Through Shopify Email Marketing
Why You Shouldn’t Set and Forget Your Marketing Automation Efforts
Written by Debra Weinryb, Content Strategist at Diff Agency
This article originally appeared in the Diff Agency blog and has been published here with permission.
GROWING GLOBAL PODCAST
eCommerce Fastlane | Shopify Podcast For DTC Brands | Growth Marketing Strategy For Entrepreneurs | Listen Notes
TRENDING POSTS
The Best Order Fulfillment Companies For Ecommerce 2025
How To Accurately Value Your Ecommerce Business In 2025: A Founder’s Guide
10+ Best Wholesale Suppliers In The USA For 2025
Website Traffic Crisis 2025: AI Search special lead Revolution & 4 Ways To Future-Proof Your Store
How To Evaluate The Worth Of An Ecommerce Business In 2025
TikTok Shop Strategies: Mastering The Fastest-Growing Platform
TRUSTED PARTNERS
Shopify Checkout
SendBird
Sell like magic with new AI Tools
Shopify Partners
How to increase subscriber lifetime value
by
Steve Hutt
10 minute read
how-to-increase-subscriber-lifetime-value
In This Article
Customer lifetime value definition
The four key levers of lifetime value
Results
How to increase subscriber customer lifetime value
Customer lifetime value, often abbreviated as CLTV or LTV seems self-explanatory: the total profit you make from an average customer between their first and last purchase.
While the definition is straightforward, calculating it and understanding how to optimize and increase it can be more challenging. You need to strike a balance that’s right for your business by adjusting four key levers that affect LTV.
But at the end of the day, the secret to being more profitable is happy customers. The purpose of all these concepts and formulas is to help you find more efficient and effective ways to do so.
Customer lifetime value definition
LTV refers to the total profit you earn from the average customer over the course of time they’re engaged with your service, or over a specified timeframe.
It’s calculation most often associated with subscriptions because it’s relatively easy to see how much a customer has spent with you until the time they cancel. However, LTV can also take into account things like one-off purchases during a specific time period.