Shopify Metric
E-commerce
LTV = AOV × Purchase Frequency × Average Customer Lifespan
Customer lifetime value (LTV) estimates the total revenue a customer will generate over their entire relationship with your store. It combines average order value, purchase frequency, and customer lifespan into a single value figure.
Full guide: definition, formula, and benchmarksShopifyE-commerceCustomer Lifetime Value
Customer lifetime value (LTV) estimates the total revenue a customer will generate over their entire relationship with your store. It combines average order value, purchase frequency, and customer lifespan into a single value figure.
How to calculate customer lifetime value
Why customer lifetime value matters for Shopify users
LTV determines how much you can profitably invest in acquiring and retaining customers. It anchors budget decisions across marketing, loyalty programmes, and customer experience investment.
Shopify merchants can segment LTV by acquisition channel, first product purchased, and geography to identify the most valuable customer profiles and optimise acquisition targeting.
Understand and act on customer lifetime value with KPI Tree
Sync Shopify order history to your warehouse and compute LTV in KPI Tree. Build a metric tree linking LTV to its components, AOV, frequency, and retention, so teams can see which lever to pull.
Assign cross-functional ownership and set alerts when LTV-to-CAC ratio falls below your profitability target.
Get started with your Shopify data
MCPPull metrics from Shopify directly through the Model Context Protocol.
Connect your existing warehouse where Shopify data already lands.
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Related Shopify metrics
Customer Acquisition Cost
E-commerceMetric Definition
CAC = Total Acquisition Spend / New Customers Acquired
Customer acquisition cost (CAC) measures the total marketing and sales spend required to acquire a new customer. It encompasses ad spend, creative costs, agency fees, and any other direct acquisition expenses.
Average Order Value
E-commerceMetric Definition
AOV = Total Revenue / Number of Orders
Average order value (AOV) is the mean monetary value of each completed order. It captures the combined effect of pricing, bundling, upselling, and promotional strategies on basket size.
Customer Repeat Rate
E-commerceMetric Definition
Repeat Rate = (Customers with 2+ Orders / Total Customers) × 100
Customer repeat rate is the percentage of customers who make more than one purchase within a defined period. It measures customer loyalty and the effectiveness of retention and re-engagement efforts.
Order Frequency
E-commerceMetric Definition
Order Frequency = Total Orders / Unique Customers (in Period)
Order frequency measures the average number of orders placed by a customer within a defined period. It indicates purchasing cadence and is a key component of customer lifetime value calculations.
Explore customer lifetime value across integrations
All Shopify metrics
Average Order ValueCart Abandonment RateCheckout Conversion RateCustomer Acquisition CostCustomer Repeat RateDiscount Usage AnalysisFulfilment SpeedGross Merchandise VolumeInventory TurnoverMarketing Channel AttributionNew vs Returning CustomersOrder FrequencyOrders Per CustomerProduct Performance AnalysisProduct Return RateProfit Margin by ProductRevenue by ChannelRevenue by GeographyRevenue Per VisitorSessions to Purchase RatioShipping Cost AnalysisStore Conversion RateTop Selling Products AnalysisTraffic Source PerformanceAbandoned Cart Recovery RateAverage Product RatingCart Conversion RateCheckout Abandonment RateCollection Performance AnalysisCustomer Cohort AnalysisCustomer Segmentation AnalysisPayment Method DistributionRevenue Growth RateSeasonal Trend AnalysisEmpower your team to understand and act on Shopify data
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