Calculate your customer lifetime value (CLV) in seconds. For free.
In just a few clicks you can now calculate your Shopify store's CLV.
* This tool does not store any data from your storefront.
What is CLV?
Customer lifetime value is a metric that estimates the total monetary value that an average customer will contribute to a company over the customer's expected lifetime. CLV is conceptualized as the sum of all the transactions, including purchases, returns, shipping costs, etc. for an individual.
Factors That Contribute To CLV
Monetary
Shoppers who have purchased recently are more likely to be active shoppers, and more likely to purchase again. This increases the total amount they spend with your brand and in turn their lifetime value.
Returns
By providing a seamless and hassle-free returns experience for your shoppers, you're more likely to retain them after a return. This means more shoppers will give your brand another shot, improving your purchase frequency and increasing your CLV.
Recency
Shoppers who have purchased recently are more likely to be active shoppers, and more likely to purchase again. This increases the total amount they spend with your brand and in turn their lifetime value.
Frequency
Shoppers with a lower frequency of purchases are more valuable to a brand because they're likely to become loyal customers and continue to purchase.
