Collect the matching inputs.
Group customers by first purchase month. Sum net revenue minus agreed variable costs for their orders over an equal horizon, including original customers who never reorder.
← All ecommerce KPIs
Customer loyalty · CLV / LTVCustomer lifetime value.
Customer lifetime value.
See the value beyond the first order.
Customer lifetime value estimates the contribution a customer generates over the relationship. A fixed-horizon cohort value is a practical starting point: observe contribution from the same customers over a stated number of months.
Start with your numbers.
CLV / LTV calculator
01 / The definitionWhat is
What is
customer lifetime value?
Customer lifetime value estimates the contribution a customer generates over the relationship. A fixed-horizon cohort value is a practical starting point: observe contribution from the same customers over a stated number of months.
Revenue LTV is not contribution LTV. Predictive lifetime models need explicit retention, margin and discounting assumptions; a 12-month observed figure should be labeled 12-month value.
02 / The measurementA clear formula.
A clear formula.
A useful comparison.
CLV / LTV =Cohort contribution before acquisition cost ÷ Customers originally acquired
Read the result in context.
Compare mature acquisition cohorts at the same age, by channel and first product. Set an economically viable target against fully loaded CAC.
Document the comparison.
Keep the reporting dates, population, exclusions and calculation with every result. Show underlying counts as well as the average or rate, so a small sample does not look more conclusive than it is.
Illustrative example
From inputs to insight.
- Cohort contribution before acquisition cost
- 30,000
- Customers originally acquired
- 200
- CLV / LTV
- €150.00
€150 per acquired customer over the stated observation horizon. This example is observed contribution, not a forecast of infinite lifetime value.
Try your numbers ↑03 / Industry benchmarksContext first.
Context first.
Targets second.
Compare mature acquisition cohorts at the same age, by channel and first product. Set an economically viable target against fully loaded CAC.
We have not verified a public industry benchmark that matches the exact definition used on this page. A precise-looking generic range would hide important differences between businesses.
Build your own benchmark
Start with a comparable baseline.
01
Match the population.
Choose the category, channel or customer cohort you can compare consistently.
02
Let the data mature.
Use complete periods and allow the purchase, attribution or returns window in your definition to close.
03
Test a specific opportunity.
Set a target from your economics and observed variation. Keep conversion and contribution in view.
04 / Clerk customer evidenceReal stories.
Real stories.
Clear measurement limits.
These examples show the reported outcome or a related use case. Read each evidence label before comparing it with your KPI.
Related customer-engagement example
Barefoot Junkie
The case describes welcome and win-back journeys. It does not publish a quantified result for this KPI.
Read the customer story ↗Customer stories describe individual implementations. They are not industry benchmarks, guarantees or standardized causal tests.
05 / Put it into practice
See the value beyond the first order.
Build relevant replenishment and complementary-product journeys using purchase history, then measure contribution from the whole acquired cohort.
06 / Common questionsA little more
A little more
clarity.
How do I calculate customer lifetime value?
Cohort contribution before acquisition cost ÷ Customers originally acquired. €150 per acquired customer over the stated observation horizon. This example is observed contribution, not a forecast of infinite lifetime value.
What should I check before comparing results?
Revenue LTV is not contribution LTV. Predictive lifetime models need explicit retention, margin and discounting assumptions; a 12-month observed figure should be labeled 12-month value.
What is a good customer lifetime value?
Compare mature acquisition cohorts at the same age, by channel and first product. Set an economically viable target against fully loaded CAC.
Does a higher attributed result prove incremental growth?
No. Attribution connects an interaction with an outcome under a reporting rule. To estimate what a change added, compare randomly assigned treatment and control groups using the same eligible population and a predefined measurement window.
Keep learning
Connect the numbers.
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