Sales Tool 31

Account
LTV & Retention

What is a wholesale account actually worth over 3 years? Model LTV at different retention rates, quantify the cost of churn, and build the business case for account retention investment.

1Account Profile

Avg Year-1 Revenue ($)

Revenue Growth Rate (%/yr)

Expected annual growth on retained accounts

Gross Margin (%)

2Retention & Churn

Year-2 Retention Rate (%)

Year-3 Retention Rate (%)

3-Year Avg Retention

—

Account Reactivation Rate (%)

% of churned accounts eventually return

True Churn Cost per Account ($)

—

3Account Investment

Annual Retention Cost per Acct ($)

Samples, service, visits, co-op

Account Acquisition Cost ($)

Accounts in Active Portfolio (#)

Account 3-Year LTV—

LTV
3 Years

—

Churn
Cost

—

Retention
ROI

—

3-Year LTV Model

Year 1 Revenue—

Year 2 Revenue (if retained)—

Year 3 Revenue (if retained)—

Gross Revenue (3yr, if retained)—

× Gross margin—

− Retention investment (3yr)—

Net LTV (3 years)—

Churn Economics

Lost revenue (churn in Yr2)—

Replacement CAC—

Total churn cost per account—

Retention Rate Sensitivity

Ret. Rate	Yr-2 Rev	3yr LTV	vs 100%

P23-EDU · TWENTY3 IntelligenceSales Tool 31·Account LTV & Retention·3-Year Revenue + Margin Model·Churn Cost vs Retention Investment·P23-EDU · TWENTY3 IntelligenceSales Tool 31·Account LTV & Retention·3-Year Revenue + Margin Model·Churn Cost vs Retention Investment·

Account Retention and LTV Calculator