Customer Lifetime Value in ecommerce (technically known as Lifetime Revenue in this sense) is a measure of the total spend a customer will generate on your site over the full period they are a customer. Typically, most ecommerce reporting tools will only show you the revenue a customer generates per order. By knowing how many orders and how much money a customer will spend over their entire relationship with your site, you can then make more informed decisions about how to spend your marketing budget and thus generate larger returns to help your ecommerce business grow.
Traditionally Customer Lifetime Value references the lifetime profit contribution of a customer rather than just the raw revenue generated, but with most ecommerce platforms generally not providing that information, our reporting focuses on Lifetime Revenue based calculations.
As well as reporting on overall customer Lifetime Revenue for any ecommerce site, we'll also show you Lifetime Revenue by year and by first purchase month. There's also a wealth of other month-by-month data available in your report such as the % churn rate of customers based on their first order month.
Calculate Customer Lifetime Value for Magento
Magento 2 doesn't include any lifetime value reports as standard but don't worry, calculating customer lifetime value for Magento is easy with RFM Calc. Simply export your order file from your Magento 2 order screen via the 'Export -> CSV' option in the top right of the screen, upload it to our systems and we'll do the rest. The Magento order export CSV is already in our ideal format (1 order per line, orders listed oldest to newest) so you won't need to change any of the default project configuration options when setting up your Magento ecommerce project on our system.
Calculate Customer Lifetime Value for WooCommerce
To calculate lifetime value for WooCommerce, you'll need to add a CSV export module (if you don't already have one installed) to your WooCommerce ecommerce site. There are a wide range of CSV order export modules available, some free and some paid. Once you've exported your orders as a CSV file, simply upload it to RFM Calc and we'll calculate a huge range of LTV metrics for your WooCommerce site.
Calculate Customer Lifetime Value for Shopify
As one of the most popular ecommerce platforms in the world, we've made sure it's ultra simple to calculate customer lifetime value for your Shopify store using RFM Calc. On your Shopify order screen simply click the 'Export' option top right, select 'All orders' (or a specific date range of orders) and select 'Plain CSV' as the export type. Shopify will export multiple lines per order in the CSV but don't worry, we'll combine all order data as required when we process your Shopify ecommerce report.
Calculate Customer Lifetime Value for any other Ecommerce Platform
The beauty of RFM Calc is that we can show you the customer lifetime value for literally any ecommerce platform; simply export your orders as a CSV file, upload them to our systems and we'll calculate everything for you.