Beauty driving CLV through email marketing. Customer lifetime value (CLV or LTV) is one of the most important metrics you need to be tracking – and improving – to scale your brand over time. Unfortunately, it is also one of the most overlooked within eCommerce.
Before you start trying to figure out the net profit of each customer over the lifetime of their relationship with you, know that taking that route may be impractical. Instead, determining what each customer is worth over a specific payback period is perhaps a more straightforward and less caveated approach. Let’s look at how you can do that.
To calculate your LTV, you need to multiply your Average Order Value by your average purchase frequency rate to determine your customer value. Then multiply that value by your average customer lifespan, in this case, your calculated specific payback period.
Mathematically, LTV = Average Order Value x Average Purchase Frequency Rate x Average Customer Lifespan.
Let’s break this down further.
Average Order Value: To get this value, divide your total revenue over a time period, say one year, by your total number of orders in that same period.
Average Purchase Frequency: To get this value, divide your total number of purchases over a time period by the number of unique customers who made purchases in that time period.
Average Customer Lifespan: get this value by averaging the time period a customer continues purchasing from your brand.


Feedback emails, like the one below from Anthropologie, can be a useful way of re-engaging with lapsed customers – to either reactivate them or to simply get their feedback so to better understand the reasons why they haven’t purchased in a while. This can help to refine all areas of your customer journey, from your on-site experience to the emails you send, and customer service. Anthropologie recognise that people are more likely to take the time to fill out a feedback survey if offered an incentive, in this case, a 20% off discount code.
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