One of the key metrics in an eCommerce business, like one you can set up through Shopify, is the lifetime value of a customer. Simply put, the lifetime value of a customer is the measure of how much revenue a single customer will create over a lifetime of interacting with your business.
Let’s take a simple example of shaving razors (check out Harry’s for a great online store example). If a customer buys razors for $5 each month from a single brand for 5 years before switching to a different brand, then the lifetime value of the customer is: $5 x 12 months x 5 years = $300.
A huge part of this value comes from Read More…