Most people start a local food business because they care about local food and community, not because they want to spend their days decoding business acronyms.
But there is one specific number hiding in your subscription data that could be the key to your business’s long-term sustainability. It’s called L.T.V., or Lifetime Value.
While it sounds like corporate jargon, it’s actually just simple addition.
What is Lifetime Value (L.T.V.)?
In plain English, L.T.V. is the total amount of money a customer is worth over the entire time they stay with you.
Most operators focus on the 'order value': what a customer spends today. But that’s only half the story. If a customer spends £25 once and never returns, their value is £25. If they subscribe for two years, their value is thousands.
Why It Matters: The £6,000 Opportunity
We recently worked with a food hub where the average L.T.V. was around £400. By looking at that total value instead of just weekly sales, we identified a massive opportunity.
If that food hub encouraged their existing customers to take just three more deliveries or boxes over the course of their subscription, look at what happens:
The Math: 3 extra boxes per customer × 100 customers.
The Result: £6,000 in additional revenue.
The best part? This isn't about finding new customers (which is expensive and difficult). It’s about getting more value from the same customers you already have.
You Are in Control
The beauty of L.T.V. is that it isn't a static number. You have two direct levers to increase it:
Retention: Help customers stay longer, and L.T.V. goes up.
Basket Size: Help customers buy more each time, and L.T.V. goes up.
When you focus on these two things, your business becomes more stable and more profitable without the constant stress of 'customer hunting'.
Master Your Numbers with Us
This is the first post in our In Plain English series, where we take one piece of business jargon and make it useful for farms and food hubs.
We’re currently building a new program to help operators like you master these metrics and grow your revenue sustainably.
Ready to find the hidden value in your business?
Click below to express your interest.
