How to Maximise Lifetime Value (LTV) & Increase Your Revenue

Hey,

Welcome to another week of Bootstrapped Growth.

We dive into how to boost customer lifetime value instantly with one simple pricing trick.

Today, I’m going to share:

• 🚀 1 Growth Strategy

• 🛠 2 Useful Resources

• 🎓 3 Marketing Examples

Let’s jump in!

🚀 LTV Marketing

How to Boost Customer Lifetime Value by 25%

The Strategy:

Keen to boost long term customer value for your business?

Price your annual plan slightly higher than the average Lifetime Value (LTV) of your monthly users.

For example, if your average user sticks around for 4 months, set your annual plan at the cost of 5 months. This simple adjustment can boost your LTV by 25% with minimal effort.

Why It Works:

This strategy shifts users from monthly to long-term plans. It’s a win-win: users perceive they are getting a better deal. You secure more revenue upfront, reduce churn, and improve overall client lifetime value.

Examples:

• Spotify and Netflix don’t offer any yearly plans. This indicates that their average customer stays for longer than 1 year.

• Shopify offers a monthly plan for £25/m or yearly for £228. This shows their likely customer retention is around 9 months (228/25 = 9.12). This is the same across all their pricing tiers.

• Canva Pro is £13/m or £100/y. This means that their average retention is likely around 7 to 8 months.

🛠 2 Useful Resources

(Bookmark These)

• Cool tools that actually get used: Watch here

• Video breaking down the recent Google algorithm leak: Watch here

🎓 3 Marketing Examples

Example #1 - Brand TikToks:

Brands often take themselves too seriously on social media platforms. When trying to communicate with a younger audience it’s sometimes better to just have some fun.

Examples:

• Bose:

@bose

Hey everyone i want to win an award. I feel like everyone importabt has awards nowadays so comment that bose should win an award so i get ... See more

• RyanAir: Here’s a great podcast talking about the now famous RyanAir TikTok.

@ryanair

humbled 🫡 #ryanair

• Liberal Democrats: these guys clearly know their audience

Example #2 - Free Trials Don’t Always Work:

Example #3 - Create Streaks:

Remember Snapchat streaks?

There’s a reason behind why they used them. It encourages consistency. If you’re using the app every day (or at least on a consistent basis) over time you form habits.

Beehiiv has started doing this:

And Duolingo is famous for it:

🗞️ Recommendations

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