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 is most often used to lifetime revenue of a customer. Learn more about our customer lifetime value reports by watching our video overview below:
As part of our customer lifetime value reporting, we'll show you a massive range of invaluable data insights regarding the total lifetime spend of your ecommerce customers. These include overall and by year lifetime value data tables:
and lifetime repeat and churn rate by order count (this is incredibly valuable data to demonstrate how much more likely returning customers are to purchase again after their first repeat order):
and if that wasn't enough, for even deeper lifetime value insights, we'll even show you lifetime value based on a customer's first order month:
and by a customer's first order value (does a high revenue first order always mean a greater lifetime value?):
Incredibly, our amazingly detailed customer lifetime value reports are available on all RFM Calc account plans, even our free-for-life plan. Simply upload your order file from literally any ecommerce platform (including Shopify, WooCommerce, Magento and more) and we'll do the rest! Sign up for a free account below and start generating customer lifetime value reports for your ecommerce store in minutes.