Lifetime Value Growth

Retention > Lifetime KPIs > LTV Growth

Summary

The report displays the Lifetime Value per Customer and related metrics across different lifetime periods, such as First Order, 30 Days, 60 Days, 90 Days, 180 Days, and 1 Year. This view helps you understand customer engagement, order frequency, and spending behavior over time, providing insights into the long-term value generated by each customer.

Questions the report answers

• How does the value of customers change over different lifetime periods?
• Are there specific points in time where customer value drops significantly?
• What are the key drivers influencing changes in customer lifetime value over different periods?

How to read the report

This report examines Lifetime Value per Customer across different Lifetime Periods — specific intervals from the customer’s first purchase, including First Order, 30 Days, 60 Days, 90 Days, 180 Days, and 1 Year. These standardized periods allow you to compare customers fairly by tracking metrics consistently from their initial purchase date. For example, "LTV 90 Days" refers to the lifetime value generated by customers within the first 90 days of their engagement with the brand.

The top section provides a chart that shows the Lifetime Value per Customer over these lifetime periods, making it easy to observe overall trends at a glance. This visual can help you quickly identify whether customer value is increasing, steady, or declining over time.

Below the chart, stable presents a detailed breakdown of key metrics such as Lifetime Value per Customer, Lifetime Orders per Customer, Lifetime AOV, Total Customer Count, Total Order Count, and Total Order Value by Lifetime Period.

Assess Lifetime Value Growth: Lifetime Value per Customer represents the total revenue generated by each customer over a specific lifetime period.

• The Lifetime Value per Customer metric should ideally show a gradual increase as customers continue their engagement beyond the initial purchase. However, if there is a decline at or after a specific lifetime period, it might indicate a drop in customer interest or challenges in retention.
• Use the supporting metrics like Lifetime Orders per Customer and Lifetime AOV to pinpoint the underlying reasons for changes in customer value.
• The Total Customer Count, Total Order Count, and Total Order Value metrics provide a comprehensive view of overall performance. Analyzing these figures alongside per-customer metrics helps assess whether growth in customer numbers aligns with increases in engagement and spending.

Glossary

Lifetime Average Order Value

The average order value over the lifetime of customers. It is calculated by dividing the total order value by the total order count.

Lifetime Orders per Customer

The average number of orders placed by customers over their lifetime. It is calculated by dividing the total order count by the total number of customers.

Lifetime Period

The Lifetime Period refers to the specific time frame used to measure a customer's spending from the date of their first purchase. This standardized period allows for consistent comparisons across customer segments by capturing customer behavior within a defined duration, such as 30 days, 90 days, 1 year, or 2 years.

Lifetime Value per Customer

The average lifetime value per customer. It is calculated by dividing the total order value by the total number of customers.

Total Customer Count

The total count of unique customers who have made at least one purchase. It is calculated by counting the distinct customers.

Total Order Count

The total number of orders placed by customers over their lifetime. It is calculated by summing the lifetime order counts.

Total Order Value

The total value of all orders placed by customers over their lifetime. It is calculated by summing the lifetime order values.