Lifetime Value
Optimization
Not All Enrollment Is Equal
Elite schools know their unit economics: what it costs to acquire a student vs. what they're worth over time. They optimize for profitable growth. Most schools enroll whoever applies and wonder why they're cash-strapped.
The Most Important Ratio in Enrollment
LTV:SAC = Lifetime Value : Student Acquisition Cost
Lifetime Value (LTV)
Student Acquisition Cost (SAC)
LTV:SAC Ratio
42:1
For every $1 spent acquiring students, you generate $42 in lifetime value
ELITE TIER (Above 7:1)
Not All Lead Sources Are Created Equal
Track SAC by channel. Optimize budget allocation.
| Channel | Cost/Inquiry | Conversion Rate | SAC | Verdict |
|---|---|---|---|---|
| Referrals | $0 | 62% | $0 | INVEST MORE |
| Organic Search | $12 | 44% | $27 | SCALE UP |
| Paid Search (Google) | $85 | 31% | $274 | OPTIMIZE |
| Facebook Ads | $42 | 18% | $233 | TEST MORE |
| Billboards | $420 | 8% | $5,250 | KILL IT |
Elite schools kill expensive, low-converting channels and double down on what works.
The Sustainable Growth Model
Unsustainable Growth
LTV:SAC: 2.1:1
You're spending $1 to make $2.10
Looks profitable but...
After overhead, you're losing money on growth
Breakeven Growth
LTV:SAC: 4.2:1
You're spending $1 to make $4.20
Covering overhead...
Growth is sustainable but not wealth-creating
Elite Growth
LTV:SAC: 8.3:1
You're spending $1 to make $8.30
After all overhead...
Growth creates wealth and enables reinvestment
Calculate Your LTV:SAC Ratio
Step 1: Calculate LTV
Lifetime Value =
$17,640
Step 2: Calculate SAC
Student Acquisition Cost =
$420
Your LTV:SAC Ratio
42:1
Elite Tier - Sustainable Growth Model
You're generating $42 for every $1 invested in enrollment
Three Ways to Optimize Your Ratio
Increase LTV
Make each student more valuable
- → Improve retention (more years enrolled)
- → Add programs (summer, after-school)
- → Enroll siblings (family LTV)
- → Reduce variable costs
Decrease SAC
Spend less to acquire students
- → Increase conversion rates (less waste)
- → Kill expensive channels
- → Boost referrals (zero cost)
- → Improve organic visibility
Target High-Value
Enroll students who stay longer
- → Identify high-retention profiles
- → Market to families with siblings
- → Focus on grades K-2 (longer runway)
- → Qualify leads better (fit matters)
Most Schools Don't Track Unit Economics
They spend $50,000 on marketing without knowing their SAC. They enroll 100 students without knowing their LTV. They make enrollment decisions in the dark.
The result? Expensive growth that creates cash-flow problems instead of wealth.
Elite schools know their numbers. They optimize their ratios. They grow profitably.
Not All Enrollment Is Equal.
Some Students Are Worth 3x Others.
Elite schools know who, from where, and at what cost. Do you?