Estimate the lifetime value of a digital product customer using average order value, purchase frequency, lifetime, margin, churn, upsells, and subscription revenue. Use it to set CAC limits.
LTV estimates how much gross profit a customer creates over the relationship. Higher LTV supports higher acquisition spend and stronger growth.
Courses may have LTV around $200–$700, templates $80–$250, SaaS $500–$3,000, and memberships $300–$2,000 depending on retention.
If AOV is $60, customers buy 0.7 times per month for 24 months, with $80 upsell and $15 monthly subscription, gross profit LTV is about $1,014.
A good LTV is high enough to support CAC, operating costs, and profit, often with at least a 3:1 LTV:CAC ratio.
Multiply expected purchases and order value across the customer lifetime, then adjust for gross margin, churn, and upsells.
Increase retention, add relevant upsells, improve email follow-up, launch subscriptions, and encourage repeat purchases.
Many SaaS teams use 3:1 as a minimum target and 5:1 or higher as a strong signal of efficient growth.
Yes. Higher churn shortens the customer relationship and reduces the revenue and gross profit expected from each customer.
| Metric | Meaning |
|---|---|
| Health Score | 0–100 score based on margin, cost pressure, risk, or efficiency. |
| Status | Excellent, Good, Average, or Needs Improvement. |
| Recommendation | Automatic next-step guidance based on the result. |
| Benchmark | Industry-style range for practical comparison. |