Customer value management can be done in the following way:

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For example, visitors to a fitness club pay $20 per month for a visit over three years:

$20 x 12 months x 3 years = $720 in total revenue (or $240 per year).

You can use this formula as a basis for your research. But you shouldn’t be sure that most clients will visit the fitness club for three years. To clarify your forecasts, try dividing clients into several groups. For example, the following segmentation may take place:

attend group classes and study individually;

attend additional classes;

purchase vitamins and protein supplements;

buy sportswear, equipment, drinks.

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Analyze this information to determine who leaves the center more often and who visits it for a long time.

By determining the value of each of these customer groups, you will discover the difference between the cost of acquiring them and the profit you receive. In the future, you will be able to consciously invest in acquiring customers of a certain type.


clearly define your target audience and strive to interact only with them. The sales funnel stage "Lead qualification" helps with this;

develop a clear and useful loyalty program for regular customers;

choose sales channels based on your audience;

Incentivize consumer action with gifts;

create free useful content and exchange it for reposts on social networks;

conduct online educational events;

make useful newsletters;

Expand the product matrix;

try to offer customers more options for similar products in different price categories;

create a relationship between the income of the company's employees and the value of clients by increasing the percentage received by the manager for long-term cooperation;

Conduct “Bring a friend” promotions.

CLV (Customer Lifetime Value)
This coefficient is used to calculate the total amount of potential earnings, taking into account the existing client base.

CLV = S x C x P

Unlike the previous formula, there is no element related to the duration of interaction.

How to increase CLV:

Attract more of the right customers who match your target audience. Customer value should be the focus of your marketing strategy. Instead of spending money on attracting everyone’s attention, focus your efforts on your target audience. You need to develop relationships with those customers who will invest in your business in the future.

Customer value


Develop regular customers. Work with buyers who show average activity to increase the number of purchases and their value.

Increase the average bill by offering additional services and related products. To ensure that innovations are in demand, conduct a preliminary survey among the target audience.

CRR - customer retention rate
First, you need to attract customers, and then you need to retain them. That's why it's important to monitor the rate at which your customers leave you.

CRR = ((EN)/S) x 100 , where

E — number of clients at the end of the period,

N is the number of new customers acquired during this period,

S is the number of clients at the beginning of the period.

Let's say you had 200 customers (S) at the beginning of the quarter. Over a period of time, you lost 20 customers but gained 40 new ones (N). The number of customers at the end of the quarter is 220 (E).

Let's substitute the numbers into the formula:

((220-40)/200) x 100=90.

The result is remarkable: the retention rate is 90 percent.

It is very important to perform the calculation separately for each segment, since the result of calculations for the entire customer base will be misleading.

According to Harvard Business School, every 5 percent increase in CRR increases profits by 25 to 95 percent.

In the infographic below, KISSmetrics shows other methods for determining customer lifetime value. You might find these formulas useful, too.