Data Snacks Video — Customer Lifetime Value

data-snacks-video-—-customer-lifetime-value

Customer lifetime value (abbreviated as LTV, CLV, or CLTV) is a calculation of how much money a customer has spent with a business. For eCommerce brands, it is a crucial metric that reflects the health of the business and informs decisions such as customer retention and customer acquisition, and it can be used as a basis to segment customers.

Customer lifetime value is one of the most important eCommerce metrics, but we see it miscalculated all the time: in short, customer lifetime value is the gross margin per customer over their lifetime with your brand.

LTV is often miscalculated as the total sales, or predicted sales value: these are the metrics lifetime revenue (LTR) and predicted revenue. Many companies rely on these miscalculations due to misunderstanding customer lifetime value, and they harm their brands in the process.

Here’s Daasity Dan for more on customer lifetime value:

Customer Lifetime Value Formula

For a deeper dive into customer lifetime value, head over here!

Special thanks to our friends at Daasity for their insights on this topic.
Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Prev
Want To Make Customers Fall In Love With Your Brand This Valentine’s Day?
want-to-make-customers-fall-in-love-with-your-brand-this-valentine’s-day?

Want To Make Customers Fall In Love With Your Brand This Valentine’s Day?

Next
How To Use Performance Marketing To Increase Customer Retention  For Your Beauty Brand
how-to-use-performance-marketing-to-increase-customer-retention for-your-beauty-brand

How To Use Performance Marketing To Increase Customer Retention  For Your Beauty Brand

Author

Steve has entrepreneurship in his DNA. Starting in the early 2000s, Steve achieved eBay Power Seller status which propelled him to become a founding partner of VisionPros.com, a contact lens and eyewear retailer. Four years later through a successful exit from that startup, he embarked on his next journey into digital strategy for direct-to-consumer brands.

Currently, Steve is a Senior Merchant Success Manager at Shopify, where he helps brands to identify, navigate and accelerate growth online and in-store.

To maintain his competitive edge, Steve also hosts the top-rated twice-weekly podcast eCommerce Fastlane. He interviews Shopify Partners and subject matter experts who share the latest marketing strategy, tactics, platforms, and must-have apps, that assist Shopify-powered brands to improve efficiencies, profitably grow revenue and to build lifetime customer loyalty.

You May Also Like
payday loans loans for bad credit
where can i buy clomid buy clomid