Calculation of LTV (Guesstimate method)

Step 1: Calculated online LTV

User spends ₹1400 over 3 months before churning
Online LTV = ₹1400

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ASSUMPTION → An online customer will typically book two appointments over a period of 3 months if the kid is unwell. (Rs.700/session as mentioned by the BabyMD customer executive)

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Step 2: Calculate offline LTV

User spends ₹2400 over 6 months before becoming inactive
Offline LTV = ₹2400

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ASSUMPTION → An offline customer will typically book three appointments over a period of 6 months if the kid is unwell. (Rs.800/session as mentioned by the BabyMD customer executive) I have excluded vaccinations right now for the sake of calculations

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Step 3: Determine the weightage

Online contribution: 5% of total business
Offline contribution: 95% of total business

🚨 Calculation of business split (WHY 5% - 95%)

GUESSTIMATION METHOD	Approximate numbers	Comments
Online		Online doctor consultation services
Website Traffic	300	SemRush analysis
Conversion rate (Landing page to paying customer)	3%	Website / App conversion benchmarks
Paying customers (A)	10
Offline		Offline clinic visits at the 2 Baby MD clinics
Total number of reviews in a month	15	Approximate Google reviews for 2 clinics in one month
Number of people who write reviews out the ones who visit	5% (Guesstimate)	How many people write reviews after visiting a place? (Link)
Total paying customers (B)	300
Total paying customers for a business	310	(A) + (B)
Online	3.10%	Rounded off to 5%
Offline	96.90%	Rounded off to 95%

Step 4: Calculate Business LTV Using Weighted Average

Business LTV = (₹1400 × 0.05) + (₹2400 × 0.95)
Business LTV = ₹70 (from online) + ₹2280 (from offline) = ₹2350
Final Result: Business LTV = ₹2350

Business health and LTV : CAC ratio

LTV : CAC Ratio = 0.78 : 1 (Benchmark → 3:1 or more for a healthy business)