Tag: customer lifetime value

What you can do once you know your Average Orders per Customer

Once you calculate your Shopify store’s average orders per customer, you have the data needed to answer a variety of questions. Should you design a loyalty program around 5 orders or 10 orders? When should bonus gifts be added to an order? Are customers only ordering a second or third time, or are they ordering …

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So many Lifetime Values, so little clarities

This week I was doing some research on how to calculate a customer’s Lifetime Value (aka LTV, CLTV, CLV, CV, BBQ, LOL, TLA…) It seems that no one agrees on even a definition of what Lifetime Value is, let alone how to calculate it. For some people it’s the sum of the amounts a customer …

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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 …

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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 …

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