How tls mazimizes long term member value
A key question we often hear is how we ensure long-term success in a competitive industry. In this post, I’ll explain our focus on 1) maximizing Customer Lifetime Value (LTV), 2) why we emphasize member retention over short-term sales, and 3) how our personalized approach delivers outstanding results for our members and investors.
It turns out that when you treat people right and deliver their personal goals, they tend to spend more.
What Is Lifetime Value?
Lifetime Value (LTV) is the total revenue a business generates from a customer over the course of their relationship with the brand. For TLS, LTV is a critical metric that reflects our ability to retain members and provide consistent value.
LTV is driven by three key variables:
Duration: How long a member stays with us.
Membership Pricing: The monthly revenue from membership tiers.
Other Fees: Additional revenue from services like personal training, workshops, or merchandise.
A simple calculation is: LTV = Average Monthly Spend x How Long they Stay
Our strategy centers on maximizing LTV by optimizing these variables, with a primary focus on extending member duration.
Our Focus on Duration
At TLS, we believe the key to maximizing LTV is ensuring members stay engaged and committed for as long as possible. Customers will naturally spend more over that time if they believe in the brand.
We achieve this by creating two things:
A Great Environment: A welcoming, inclusive community where members feel valued, supported, and connected.
Proven Results: Tangible fitness outcomes that align with members’ goals, such as improved strength, endurance, or body composition.
By excelling in these areas, we extend member tenure, which naturally increases membership revenue and additional fees. Our data shows that members who feel included and see measurable progress are 3x more likely to renew their memberships year-over-year.
Why Personalization Matters
Personalization is the cornerstone of our strategy at TLS for two critical reasons:
Fosters Inclusion: Personalized experiences—such as tailored workout plans, instructor check-ins, and community events—make members feel like they belong. Our member surveys show that this sense of inclusion boosts retention by 20%.
Drives Results: Using data and AI, we track member progress (e.g., attendance, strength gains, and body composition) and provide customized feedback. Members who receive personalized progress reports demonstrate 2.5x higher satisfaction and are 15% more likely to refer friends.
Everything we do, from our TLS-certified instructors to our proprietary Maven equipment, is designed to enhance workout effectiveness and create a welcoming environment. When we succeed in these areas, members stay longer, significantly increasing their LTV.
What is TLS? Our Vision for the Future
Our data-driven approach delivers compelling results:
Cancellation Rate: Our monthly cancellation rate is 4.2%, meaning the average member stays for 29 months (1 ÷ 0.042).
Monthly Spend: The average member spends $165 per month across all membership tiers (excluding class pack users, who represent a small fraction of our revenue).
Lifetime Value: With an average tenure of 29 months and a $165 monthly spend, the average member’s LTV is $4,785 ($165 × 29).
This LTV far surpasses industry averages for boutique fitness studios, where short-term-focused businesses often report LTVs below $2,000 due to higher churn and lower per-member revenue.
Conclusion
The primary reason members leave TLS is relocation, not dissatisfaction—a testament to our success in delivering results and fostering inclusion. By expanding TLS to new locations, we can further reduce turnover (as members can continue at other studios) and increase LTV even more.
Unlike studios that chase short-term sales, TLS is building a sustainable model where personalization drives retention, results, and referrals.
It turns out that when you treat people right and deliver their personal goals, they tend to spend more.
Thank you for your continued support as we redefine boutique fitness and build a legacy that endures.