Every Shopify store I talk to wants the same thing: to build a base of loyal customers who love their products and buy from their store regularly.
Wanting and having are different things, though.
Some stores try and take a quantitative approach by signing up for every analytics service they can and measuring all the things. Others take a more qualitative approach and try to find common characteristics their customers share and create an experience that they believe will resonate with their customers.
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.