About Customer Lifetime Value

Customer lifetime value is a general estimate of how much a contact will spend in in your store in the future. To determine each person’s customer lifetime value, we look at their purchase history and compare it to what’s normal for your store.

In this article, you’ll learn about customer lifetime value and how to use this data to create targeted campaigns.

Things to Know

Here are some things to know about customer lifetime value.

  • This feature is available for paid accounts only.
  • To access the customer lifetime value segmentation criteria, you must have a connected store with enough data for us to categorize your customers.

About the Categories

Customer lifetime value can fall into 1 of 4 general categories: new, high, moderate, and low.

Here’s an overview of what each category indicates about your customers.

| Customer Lifetime Value | Customer Characteristics | | ------------- |-------------|| | High | Customers whose predicted future spend is high. | | Moderate | Customers whose predicted future spend about is moderate. | | Low | Customers whose predicted future spend amount is low. |

To determine a customer’s lifetime value, we do some math on our end to compare averages for your store to a few customer-specific variables:

  • Spend amount
    Measures how much money a person has spent in your connected online store.
  • Customer age
    How long a person has been a customer, or the amount of time since their first purchase.
  • Time between first and last purchase
    The time between a customer’s first purchase and their most recent, or last, purchase.
  • Time since most recent purchase
    The time since a customer last made a purchase from your store.
  • Frequency How many times a customer made a purchase.

We take all of these variables into consideration to make a prediction about each customer. Over time, customers can move between categories based on these different variables.

Create a Segment

Segment your contacts by customer lifetime value to organize your audience and send targeted campaigns.

segment-customerlifetimevalue-high

Learn how to create and send to a segment, or take a look at other segmentation options available to you.


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