LTV
Customer lifetime value: the revenue or profit a customer brings in over their whole relationship with your store.
Customer lifetime value: the revenue or profit a customer brings in over their whole relationship with your store.
What it is
LTV, customer lifetime value, is the total a customer is worth to your store over time, not only on the first order. It can be measured as revenue or, more usefully, as profit after the cost of the products they bought.
LTV, customer lifetime value, is the total a customer is worth to your store over time, not only on the first order. It can be measured as revenue or, more usefully, as profit after the cost of the products they bought.
LTV, customer lifetime value, is the total a customer is worth to your store over time, not only on the first order. It can be measured as revenue or, more usefully, as profit after the cost of the products they bought.
The formula
LTV = Average order value × purchases per customer × gross margin, measured over a fixed period such as 12 monthsHow to read it
Measure LTV by cohort, the month a customer first bought, so you can see whether newer customers are worth more or less than older ones. LTV only becomes a decision when you compare it with CAC: the gap between them is what you can afford to spend to win a customer.
Measure LTV by cohort, the month a customer first bought, so you can see whether newer customers are worth more or less than older ones. LTV only becomes a decision when you compare it with CAC: the gap between them is what you can afford to spend to win a customer.
Measure LTV by cohort, the month a customer first bought, so you can see whether newer customers are worth more or less than older ones. LTV only becomes a decision when you compare it with CAC: the gap between them is what you can afford to spend to win a customer.
How Cifra shows it
Cifra tracks the lifetime value of new and returning customers, and the Cohorts view in the report builder shows how LTV develops month by month for each group.
Cifra tracks the lifetime value of new and returning customers, and the Cohorts view in the report builder shows how LTV develops month by month for each group.
Cifra tracks the lifetime value of new and returning customers, and the Cohorts view in the report builder shows how LTV develops month by month for each group.