Calculate and Increase Customer Lifetime Value

Winning a new customer is great — but keeping them? That’s where the real money is.

Customer Lifetime Value (CLV) tells you how much revenue one customer brings to your restaurant over the course of your relationship. Understanding and increasing this number is the key to sustainable growth and smarter marketing.

How to calculate CLV:

Start with a simple formula:

CLV = Average Order Value × Purchase Frequency × Customer Lifespan

Let’s say:

· Your average order is $25

· The typical customer orders twice a month

· And they stick around for 2 years

Your CLV = $25 × 2 × 24 = $1,200

That means every new loyal customer is worth $1,200. The goal is to keep that number growing.

How to increase CLV:

· Offer loyalty rewards – Discounts, freebies, and points systems drive repeat visits.

· Send follow-up emails/SMS – Remind them to reorder, try new items, or come back for a special deal.

· Create bundled offers – Upsell with combos, family meals, or limited-time menus.

· Deliver a consistent experience – Every interaction should feel personal, smooth, and satisfying.

� Deliver Local makes it easy to boost CLV by providing built-in marketing tools, customer data tracking, and automated follow-ups. You’ll know who your best customers are — and have the tools to keep them coming back.

Customer Lifetime Value isn’t just a number — it’s a mindset. When you focus on loyalty over transactions, you stop chasing new customers and start building a base that grows with you.