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Adam Davis

Adam Davis

Adam has more than 5 years of experience in various marketing positions and has worked in a variety of industries including PR, communications and localization. He specializes in social media management and content creation and has a strong passion for writing.

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Top Metric #8: Lifetime Value (LTV)

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We’ve come to our final metric in this series and we saved one of the most important for last. Lifetime value, or better known as LTV, is a metric that allows you to understand how much value each member provides your gym over the course of their time as a customer of yours.

Let’s see how well you were paying attention during the first few articles as we present the following formula:


LTV is a metric that can be understood on its own, but it also can easily be explained as the total of the monthly revenue from each member multiplied by the length of their engagement with your business. Don’t worry, we’re not saying it should cost an arm and a leg to figure out the LTV of each member.

You can view these metrics right in the main Arbox dashboard and get a better picture of how they work together. Specifically with LTV, you can quickly note where it currently stands and how it has changed since a month prior. Clicking on the LTV box will open up a more detailed report where you can view the change in your members’ LTV over any given period of time.

Let’s dive deeper into this data point. Why is LTV important? First of all, it tells you how much you’re earning from your members on an ongoing basis. However, more importantly, it helps direct your marketing and sales efforts by telling you how much you should be spending on acquiring new members. If your LTV is $708 as shown in the example above, then you know you should be spending less than that to bring in new members or it won’t be worth it in the long run. If you increase your overall LTV, that gives you the freedom to put more money into marketing and new leads.

If you’d like to know more about setting up your gym with the Arbox platform and seeing these numbers in action click here to schedule a demo with our team.

To take your gym business even further, you can click here to schedule a call with a Two Brain Business mentor.

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