This week I released a new metric for Repeat Customer Insights, your store’s Average LTV. While it can be misused, it is a good metric to watch so you have an idea about how valuable each customer is on average. In the app it’s also segmented by acquisition source. That means you can compare how …
Tag: cltv
Using customer lifetime values for fun and profit
While you have to be careful averaging customer lifetime values (CLTV), they can be very useful when you keep them associated with the individual customer. Knowing how much each customer has spent is a great way of segmenting. Customers who spend a lot will tend to share behavior, while same as customers who spend very …
The impact Repeat Purchase Rate has on your customer’s lifetime value
Customer lifetime value (CLTV or LTV) is a good metric to watch. Unlike the average order value, CLTV takes into account your customers’ repeat orders. Usually when your store’s overall CLTV goes up, good things are happening. In my experience with repeat customer funnels, there’s another great metric: repeat purchase rate (RPR). Repeat purchase rate …
Your customer’s spending habits: are they buying more or less over time?
Knowing how much your repeat customers purchase over time is knowing a very powerful metric. The more repeat customers spend and the higher the likelihood of them making a repeat purchase (your Repeat Purchase Rate), the more you can spend to acquire and get repeat orders. That means you can out-bid competitors in paid advertising, …