Member Lifetime Value (LTV)
Also called: LTV, customer lifetime value, CLV, member LTV
The core formula: LTV = average monthly revenue per member × average member lifespan in months. A member paying $189/month who stays 14 months has an LTV of $2,646. Multiply that by the cost to acquire (intro offer, ads, front-desk time) and you get unit economics for the whole business.
Boutique fitness LTV benchmarks: barre and pilates studios typically land between $2,400 and $4,200 (longer retention, higher monthly price). Spin and HIIT studios run $1,500–$3,000 (shorter retention, more churn). Yoga is wide — community-driven studios hit $3,500+, gym-attached yoga programs sit closer to $900.
The two levers that move LTV are price and retention, but retention moves it more. Raising prices by 10% adds 10% to LTV. Adding 3 months to average lifespan on a 12-month baseline adds 25%. Most studios should chase the retention math first — freeze policies, intro-to-membership funnel, instructor consistency.
LTV also sets a ceiling on customer acquisition cost (CAC). A rough rule: spend no more than 25–33% of LTV to acquire a member. So if your LTV is $2,400, your blended CAC across paid ads, intro discounts, and front-desk conversion time should stay under $600–800.