The Ultimate Guide For Online Sellers & Ecommerce Brands

As an online seller, you often spend a significant amount of time sifting through multiple metrics to help make sound business decisions. But what if we told you there was one metric to rule them all? Customer lifetime value – the value you can use to strategically choose your future marketing initiatives, make better sales decisions, and increase your bottom line.

List of content What is Customer Lifespan Value (CLV)Customer Lifetime Value (CLV) relates to the amount of money a customer will bring to your brand over time as a paying customer.

For example, if you have a customer who continues to buy your products for 12 months spending $30 each month, his CLV is $360 and is still subject to change if the customer decides to continue buying your products throughout the next year. Why Should You Care About Your Customer’s Lifetime Value?

It Tells You How Much You Should Spend On Customer Acquisition


Customer acquisition refers to the progress or tactics you employ to bring in new customers or convince people to buy your products. In eCommerce, customer acquisition can mean sponsored search, organic whatsapp mobile number list search, banner ads, video ads, social media ads, email marketing or affiliate marketing.

Knowing the CLV helps you be strategic in estimating how much to spend on customer acquisition so that you attract customers who are more likely to make repeat purchases.

Customer Lifetime Value (CLV) first became prominent in the software business, but is quickly making its mark in eCommerce as well. Here are reasons to know your CLV is good for your online business:

You will be able to segment your customers by value

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Therefore, By knowing which customer groups CMO Email List bring the most profit to your business, you can find ways to retain them by sending special offers or sending gifts to these VIP customers. You can also use your CLV to identify the best paying customers and then create a customer acquisition strategy that targets people with different backgrounds and personas so that you qualify the customers who can make the most money. 

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