FAQ
What is used to calculate in Lifetime Value
- Revenue
- Adjustments (refunds, voids, chargebacks and alerts)
- Configured fees (processing, dispute, COGs, CPAs)
What is the difference between Sales LTV and Customer LTV?
Sales LTV looks at the unique Checkout Funnel and rolls all subscription renewals from that checkout to show the Profit per Order of the checkout.
One Customer can go through multiple Checkout iterations. That LTV can be broken out by the different Orders they purchased.
Commonly used when you want to see how a specific funnel or offer is performing.
Customer LTV rolls everything up for a unique customer and ties it back to the date that Customer was acquired, how they were acquired, and the initial purchase they took. The unique customer revenue, adjustments and fees are tied to that specific customer. Whether the customer made a single purchase or returned to the store for multiple purchases, the data is contained to that customer.
Commonly used when you want to see how much on average you make per customer.
Example:
Customer A purchases a $50 subscription recurring monthly and takes a one-time Upsell of $10 on Jun 15. They renew 3 different times - July 15, Aug, 15, and Sept 16 before cancelling equalling a Total LTV for this checkout flow of $210. Customer A then comes back and purchases a cart totalling $150 on Nov 2 with no recurring offers, equalling a total LTV for this checkout flow of $150.
- The Customer LTV is $360 tied to Jun 15, when the customer was acquired
- Sales LTV will show this as:
- Jun 15 LTV = $210
- Nov 2 LTV = $150
Updated 22 days ago