A Very Simple Way to Think About Customer Lifetime Value
Customer Lifetime Value (CLV) can sound intimidating.
Spreadsheets. Formulas. Finance-y language.
But at its core, CLV is actually a very simple idea, and one that veterinary practices already intuitively understand.
What CLV really means
CLV is just this:
The total value a client brings to your practice over the time they stay with you.
Not one visit. Not one invoice. The whole relationship.
Once you look at it that way, it becomes much less abstract.
The simplest way to calculate it
You don’t need a perfect model to get useful insight.
A simple starting point looks like this:
Average annual spend per client
× Average number of years they stay
That’s it.
Example:
£800 average spend per year
7 years with the practice
Approximate CLV = £5,600
Is it precise? No. Is it useful? Very.
Why this number matters
Once you have even a rough CLV, decisions get easier.
You start to see:
Why onboarding new clients properly matters
Why reminder compliance compounds over time
Why losing a client early is more expensive than it feels
A missed vaccination reminder isn’t just a missed transaction. It’s a small crack in a long-term relationship.
Improving CLV rarely feels dramatic
The good news is that CLV usually improves through small, boring, sensible things:
Clearer reminders
Better first-year experience
Consistent follow-ups
Fewer clients slipping through the cracks
You don’t need to squeeze harder. You need to support better.
A final thought
CLV isn’t about turning care into numbers.
It’s about understanding the impact of continuity, for pets, clients, and practices.
You don’t need to obsess over the maths. Just start paying attention to the relationship.
The value tends to follow.