The Ultimate Guide to Growing Subscription CLTV (10 Proven Strategies)
Alright, let’s talk CLTV — customer lifetime value.
If you don’t know what this is, you’re leaving money on the table, plain and simple.
So here’s the deal.
Most brands struggle to keep their subscribers.
That’s a fact.
And it’s killing their growth.
Retention is the backbone of modern business survival.
And it all comes down to one number: CLTV—Customer Lifetime Value.
What is Customer Lifetime Value (CLTV)?
CLTV is the total revenue a customer generates over their entire relationship with your brand.
In subscriptions, it’s all about how much they spend and how long they stick around.
CLTV, CLV—same thing, different name.
In the end, it’s all about getting more revenue from every customer over time.
Now here’s the game-changer:
Your subscription revenue depends on retention.
Focus on boosting CLTV, and you’ll create exponential growth.
Ignore it? And your revenue slowly erodes, like a termite eating a house.
But imagine if every customer stayed subscribed.
It’s like a snowball—each month you retain them, your revenue doubles, then triples, without chasing new sales.
Face it. You want growth.
At the very least, you want to know how to grow.
And by the end of this video, you’ll have the tools to do exactly that.
Let’s rethink how you approach Customer Lifetime Value.
It’s the first step to leveling up your subscription business.
My goal for this message is to reshape how you think about Customer Lifetime Value (CLTV), because that’s the first step to elevating your subscription business to new heights.
Here’s What We’re Going To Talk About
✅ Why retention issues aren’t just business challenges, but psychological ones—and how understanding customer behavior can dramatically reduce churn.
✅ The key difference between acquiring customers and building loyalty, so you can create a subscriber base that sticks around.
✅ A new way to look at CLTV as your growth engine—not just another metric to monitor.
✅ Actionable steps to boost CLTV in any market, because mastering retention is the ultimate skill for long-term success.
CLTV: More Than Just a Number
So, what is CLTV, really?
It’s not just a figure on a spreadsheet.
It’s the story of how valuable your customer is to your business over time.
It’s about how well you keep your subscribers engaged, satisfied, and—most importantly—coming back for more.
Many businesses focus heavily on bringing in new customers.
They spend loads on ads and marketing to drive traffic.
But here's the catch—they often neglect the ones already through the door.
And that’s a huge mistake.
Why Retention Should Be Your Priority
Let’s break this down:
Acquiring new customers is costly
—up to 5 times more expensive than keeping an existing one.
Even a small boost in retention has a big impact
—increasing retention by just 5% can lift profits by 25% to 95%.
If you’re not focusing on keeping your current subscribers happy, you’re leaving serious revenue on the table.
But here’s the good news.
Focusing on retention doesn’t just protect your revenue—it creates exponential growth.
CLTV isn’t just another number to watch; it’s the key to unlocking sustainable, long-term growth without constantly chasing new customers.
The Truth About Subscription Revenue: Why Acquiring Customers Isn’t Enough
Here’s the harsh reality: If a subscriber cancels in their first month, they’re no different than a one-time purchaser.
You’ve spent the same time, effort, and money to acquire them, but in the end, you're left with just another fleeting transaction.
But if you can keep them around longer—something incredible happens.
The revenue they bring in becomes a multiplier.
It’s like rolling a snowball down a hill: the longer it rolls, the bigger it gets.
Now, imagine you sell $100 in subscription products this month.
Next month, those customers are still paying you $100, and you bring in another $100 in new subscriptions.
Now you’ve got $200—without starting from scratch.
That’s the power of retention.
Every month a subscriber stays with you, it’s like stacking wins.
The numbers don’t just add up—they multiply.
The Psychology Behind Retention
Humans are creatures of habit. We crave consistency, value, and convenience.
When a subscription taps into these needs, retention skyrockets.
Value Perception:
If customers believe they're getting more than they’re paying for, they'll stick around.
Convenience:
Make it easy to use your service.
Personalization:
Let customers tailor their subscription to feel valued.
Hidden Flaws in Your Subscription Model
If you're seeing high churn and low CLV, the problem isn’t the customers—it’s your subscription model.
Not Enough Perks: A 5% discount might have cut it in 2010, but today's consumers need real reasons to commit—think meaningful discounts, exclusive perks, or free shipping.
Lacking Quality: If product is only good and not great, people might go elsewhere to a competitor for something better.
Lacks Convenience: When subscribers can't easily change quantities or add or remove products, they’ll cancel because they can’t adjust their order.
No Frequency Recommendation: If a customer doesn’t know which option to choose, they might just choose none.
Lack of Personalization: In an age where personalization is king, not offering the experience of letting an individual mix and match their subscription items is a missed opportunity.
Overly Generous Discounts: Giving away too much of a discount can have the adverse affect, people might cancel after the first shipment just to get the deal leading to high churn.
Inflexible Frequencies: Forcing all customers into a monthly plan when they need your product weekly or quarterly? That’s a fast track to losing them. Flexibility wins.
Difficult Account Access: If logging in feels like a chore, expect cancellations. Make it easy for customers to access their accounts—or they’ll take their business elsewhere.
Not Offering Pause Options: No pause option? Big mistake. If customers can’t take a break when they need it, they’ll cancel for good. Let them pause, keep them around.
Outdated Subscription Platforms: If your subscription platform feels like it’s from the Stone Age, your customers won’t stick around. Make it easy to use, or they’ll find one that is.
1. Do Your Offer Enough Perks?
Here’s the difference between getting subscribers and keeping them hooked for the long run.
Did you know Jeff Bezos originally thought Amazon Prime was a bad idea?
One afternoon, a colleague pitched the concept to him.
Bezos responded, “This isn’t going to work.”
His employee asked, “Is that a no then?”
Bezos said, “Nope, it’s a yes. I’m willing to try something I don’t like. Prove me wrong.”
That mindset—being open to ideas he didn’t even believe in—was how Bezos focused on increasing Amazon’s Customer Lifetime Value.
And you guessed it: Amazon Prime took off.
The program was designed to build loyalty and drive repeat purchases.
The numbers spoke for themselves.
Amazon Prime doubled the company's CLTV by offering perks that made subscribing a no-brainer: free movies, books, music, and, of course, free shipping.
Customers saw the value. And that’s the key word: value.
If people don’t see enough value in what you're offering, they won’t subscribe.
Your product and perks have to be worth it.
Maybe it’s a discount, free shipping, or a free gift on the first order—something that gets them through the door.
If your perks are valuable, like free shipping or a solid discount, they’ll feel rewarded.
People stay because they find worth in what you’re offering.
"If you're not offering a decent subscription discount—like 5% or less—chances are, that’s not enough to make someone choose the 'subscribe and save' option."
2. Your Product Can’t Suck
Your subscription product needs to be great.
Not good—great.
That’s the number one ingredient in this recipe.
If Amazon Prime wasn’t awesome, no one would stay subscribed.
Whether you’re selling natural deodorant that actually works or collagen powder that makes skin glow, your product needs to wow your customers.
They don’t just need to like it—they need to love it to stay subscribed.
If your product is awesome, people will stick around.
Deliver a mediocre product, and watch your CLTV nosedive as people cancel.
But give them something so good they’d be crazy not to subscribe, and your CLTV will soar.
That’s exactly what Amazon did.
Their incentives—combined with the quality of their service—doubled customer engagement. More people subscribed, stayed longer, and bought more.
So, take a fresh look at your subscription product.
Be honest: would you subscribe?
Is your product worth it?
Do you offer enough perks to make it a no-brainer?
Could I easily add more products to my existing order?
The HOOK Method for Boosting CLTV
Harness: Grab attention with irresistible offers like discounts, bundles, or free gifts.
Onboard: Make checkout seamless, highlighting auto-refills and the convenience of never running out.
Optimize: Offer flexible product swaps, delivery frequency adjustments, and personalized recommendations.
Keep: Retain customers with loyalty perks like free shipping, discounts, and surprise gifts, while making it easy to pause or modify their subscription.
Real Life Example
Let’s say you run a Shopify store selling skincare products on subscription. A customer signs up for your monthly collagen powder.
Using the HOOK method:
Harness: You capture their attention with 15% off and a free travel-size moisturizer.
Onboard: At checkout, you explain the perks of auto-shipping and easy product swaps.
Optimize: Over time, you send tailored recommendations and let them adjust delivery schedules.
Keep: After three months, you surprise them with a free sample, keeping them happy and subscribed.
3. Let’s Talk Convenience
Have you ever used Instacart?
You can easily add, remove, or swap items before the shopper even checks out, giving you full control of your order.
This is exactly the experience you need for your Shopify subscription store.
If your customer portal doesn’t allow subscribers to manage their orders with ease, they’re more likely to cancel.
Flexibility is key—customers should be able to swap products, adjust delivery frequency, pause their subscription, or update payment info seamlessly.
An outdated or frustrating portal leads to churn, which directly impacts your CLTV.
At Ongoing, we designed our portal to be passwordless—making access simple, quick, and user-friendly.
If subscribers feel stuck or can’t make changes easily, they’ll lose trust and cancel.
Remember, high churn is the enemy of CLTV.
To improve, focus on fostering long-term relationships by making subscription management as frictionless as possible.
More flexibility = lower churn = higher CLTV.
4. Frequency Recommendation
Now the paradox of choice states that too many choices can lead to no choice at all.
It’s best to recommend a frequency that is most common for your type of products, so shoppers can quickly know which one to choose.
It might seem like a good idea to recommend monthly delivery, but it’s actually better to go for a longer duration like every 2 or 3 months, if that’s how long it actually takes to consume your product.
Which frequency is the most common with subscribers for that product?
How long does it actually take to consume the product?
It removes the hesitation and doubt.
It helps people decide.
And a decision can make the difference between getting a sale and losing a sale.
5. Personalized Bundles for Higher AOV
Offering bundles is an easy way to boost your average order value.
You can encourage customers to buy more by setting a minimum item quantity, like requiring two or more products to create a bundle.
With Ongoing Bundles, merchants can also sell products in specific pack sizes—offering discounts when customers buy in bulk.
For example, offering a subscription discount for purchasing a 3-pack instead of just one item.
You can sweeten the deal with a first-time coupon code, giving new subscribers a little extra off on their first subscription order, and then direct them towards your Bundle page.
To further increase AOV, promote upsells in your subscriber portal by suggesting complementary products, or additional items they can easily add to their subscription.
6. Overly Generous Discounts
Offering overly generous discounts can backfire.
If you’re giving a huge discount for monthly deliveries, customers might subscribe just to get the one-time deal, then cancel after the first month, leading to higher churn.
This often happens when brands use tiered subscription discounts—like 20% off for monthly, 15% off for every other month, and 10% off for quarterly.
A better approach is to offer a consistent discount, like 10% across all frequencies.
This simplifies the decision for customers, letting them focus on the duration that best fits their needs.
7. Inflexible Frequencies
Only offering a few rigid plans without tailoring to customer needs? Big mistake.
People want choices—weekly, bi-weekly, monthly, or quarterly—and they need your help picking the right one.
If you don’t recommend the perfect fit or let them switch easily, they’ll feel boxed in and bounce.
Flexibility isn't optional—it's mandatory.
Only offering a monthly subscription plan? That's like serving hot soup to someone craving a cold drink. Your customers have unique needs—some want it weekly, others quarterly.
The one-size-fits-all approach is a fast pass to churn city.
Give your customers flexibility on their subscription frequencies, and they’ll stick like glue.
8. Difficult Account Access
If getting into their account feels like solving a Rubik’s cube, your customers are going to tap out.
And if they’re constantly emailing support just to log in, that’s a headache for everyone.
People want fast, easy access to their accounts—no hoops, no friction, no hassle.
Make it simple, or they’ll cancel faster than you can say 'forgot password.'
Convenience is king.
9. Not Offering Pause Options
Life happens, and sometimes customers just need a break.
But if your subscription forces an all-or-nothing decision, guess what?
They’ll pick 'nothing' every time.
A pause button is your secret weapon.
Give them room to breathe, and they’ll come back for more.
And when they’re ready, make sure they can reactivate their subscription on their own—straight from the subscriber portal.
10. Outdated Subscription Platforms
You’re not making as much money as you could because your subscriptions have cracks in them.
If your customer portal is clunky, outdated, or hard to use, you’re chasing new customers while the old ones slip through a leaky bucket.
The portal needs to be seamless, intuitive, and constantly evolving with updates.
If your customer portal feels clunky and outdated, you’re asking for churn.
If it’s not easy to manage, your customers will bounce—straight to a competitor that makes it effortless.
Customers expect a seamless, intuitive experience that just works—every time.
Partnering with a subscription platform that understands new technology, like Ongoing.AI, isn’t just smart—it’s essential for survival.
Stay current, stay ahead of the curb, and you’ll keep your customers too.
How to Calculate Customer Lifetime Value (CLTV)
Alright, let’s break down CLTV—Customer Lifetime Value.
This is the most important number in your business.
Here’s why.
Imagine you’ve got a subscription business—maybe you’re delivering coffee every month.
One customer signs up, and they keep buying for a while.
The total profit they bring you while they’re a customer—that’s your CLTV.
So, how do you calculate it?
You take how much money each customer spends with you every month (we call that ARPU), multiply it by your profit margin, and then multiply by how long they stick around.
Simple.
Formula for Customer Lifetime Value:
Thankfully it's easy to calculate your customer lifetime value.
CLTV typically equals the revenue you expect from a customer over their lifetime, after factoring in average revenue per customer (ARPU), gross margin, and customer lifespan.
CLTV = (ARPU × Gross Margin) × Customer Lifespan
Here’s a breakdown of the lingo used for the Customer Lifetime Value (CLTV) calculation:
🎯 CLTV (Customer Lifetime Value)
CLTV stands for Customer Lifetime Value—the total amount of revenue you can expect from a single customer throughout their relationship with your business. In simple terms, it’s how much a customer is worth.
🎯 ARPU (Average Revenue Per User)
This is the average amount each customer spends over a specific period, often monthly.
Example: If customers spend $50 per month on average, your ARPU is $50.
🎯 Gross Margin
This is the percentage of revenue you keep after subtracting costs (like production and shipping). It tells you how much profit you’re making per sale.
Example: If 70% of each sale is profit, your gross margin is 70%. That means you keep $35 from every $50 spent.
🎯 Customer Lifespan
This is the average length of time a customer sticks with your business.
Example: If a customer stays subscribed for 20 months, their lifespan is 20 months.
Recap of Terms:
- CLTV stands for customer lifetime value, how much a customer is worth.
- ARPU stands for average revenue per customer, like $50 dollars.
- Gross Margin is the amount of money you get to keep after costs.
- Customer Lifespan is how long they've been around, like 20 months.
Let’s make it real:
Say your customers spend $50 a month on average.
You keep 70% of that after costs, so you’re keeping $35 per customer.
And they stick around for 20 months. Now you just multiply that
Step 1: Calculate ARPU × Gross Margin
CLTV = $50 × 0.70 = $35 This means you make $35 profit per customer per month after costs.
Step 2: Multiply by Customer Lifespan
CLTV = $35 × 20 = $700 With a 20-month customer lifespan, each customer has a lifetime value of $700.
Step 3: Interpret and Track CLTV
The customer lifetime value is $700.
That means every customer is worth $700 in profit over their lifetime.
You can measure your Customer Lifetime Value over time, so you can see if it's increasing or decreasing.
The goal is to have your Customer Lifetime Value increase.
Why should you care?
Because if you know each customer is worth $700, you know how much you can spend to get them.
If you’re spending $50 to acquire someone worth $700, that’s a steal.
You’re making a profit every time.
Bottom line: Calculate your Customer Lifetime Value so you can know exactly how much each customer is worth—and make smarter decisions on how much to invest in acquiring and retaining them.
If you don’t know your CLTV, you’re throwing money away.
Period.
4 Steps to Boost Your Customer Lifetime Value (CLTV)
Increase AOV:
Get customers to spend more.
Increase Purchase Frequency:
Get them to buy more often.
Extend Customer Lifespan:
Keep them around longer.
Reduce Churn:
Stop losing customers.
📌 Step 1) Increase AOV
At Ongoing, we saw a problem—Shopify Plus brands needed help growing CLTV. So, we built high-converting product bundles that do the work for you.
Set them up once, and your AOV automatically goes up. No extra effort. Just results.
We also launched The AOV Growth Program, powered by OngoingAI. It’s all about growth on autopilot.
📌 Step 2) Increase Purchase Frequency
Subscriptions are the key to this. Regular deliveries mean more frequent purchases.
Here’s the hack: Pick subscription intervals that make sense and push the one that’s best for your business. Don’t overwhelm customers with choices. They’ll bounce.
Make it a no-brainer by offering a deal so good they can’t pass it up. If they feel they’re winning, they’ll keep subscribing—and tell their friends too.
Keep them in the loop with reminders about upcoming deliveries, and give them the flexibility to adjust their subscriptions. Easy for them, good for you.
📌 Step 3) Extend Customer Lifespan
You want customers to stay longer?
Make them happy.
Simple.
If your product or service sucks, they’re gone.
Churn is the silent killer of DTC brands.
You can fight it by giving your subscribers perks—loyalty rewards, exclusive access to a Facebook group, or early access to new products.
Keep them feeling special, and they’ll stick around.
📌 Step 4) Reduce Churn
Churn kills. You don’t want customers leaving, but it happens.
The trick? Minimize it.
Make sure your customers are happy with the product and the experience.
If they’re not, they’re gone.
And it’s expensive to win them back.
Give them a reason to stay.
Loyalty rewards, exclusive access to a Facebook Group, early product drops—keep them engaged.
Create a community they don’t want to leave.
And when someone does cancel?
Don’t just let them walk away.
Ask them why.
That feedback is pure gold—it tells you exactly what you need to fix.
Remember, some churn is normal.
But the lower, the better.
Focus on keeping people around, and your CLTV will skyrocket.
Taking Action to Increase CLTV
Remember, the goal here is to build lasting relationships with your subscribers.
By focusing on retention and CLV, you're not just improving your bottom line—you're creating a community around your brand.
So, here's what you can do right now:
Implement one change today.
Pick one area from the five steps and start working on it.
Remember, small changes can lead to big results over time.
Persist & Keep Growing Customer Lifetime Value
Alright, here’s a wild fact.
Airbnb spent a whole year working on just one thing—their sign-up button.
One. Button.
Why?
Because it was the difference between getting a customer or losing them.
They knew if they could get someone to sign up, they’d eventually rent a place.
And after that first booking?
That customer was hooked.
That’s the power of persistence.
They didn’t stop there.
Airbnb still has a team working on improving that sign-up button.
Every. Single. Day.
And that’s what you need to do with your CLTV.
CLTV isn’t something you just set up and forget about.
You’ve got to keep tweaking and optimizing.
Adjust. Test. Repeat.
When you do that, you’ll see results.
If you ignore it? You’re leaving money on the table.
Simple as that.
Here’s the deal: increasing your CLTV is essential.
It’s the difference between growth and stagnation.
Understand your subscribers.
Give them value.
Make their experience smooth.
If you do that, your business keeps growing.
It’s that simple.
So, start optimizing your CLTV today.
Your future self will be thanking you.
Want to Grow Your Customer Lifetime Value (CLTV) ?
At Ongoing.AI, we specialize in helping Shopify Plus brands unlock sustainable revenue growth using AI-powered tools and proven strategies.
We’ll show you how to optimize subscriptions, increase retention, and grow your customer lifetime value with ease.
Book a Free Meeting to discover how we can take your revenue to the next level with intelligent automations and personalized solutions.
Built for Shopify Plus brands, we do the heavy lifting—so you can focus on scaling your business.