How To Calculate Customer Lifetime Value

Shopify has a great post on Customer Lifetime Value (CLV), which is one of the most essential metrics you should know about your ecommerce business.

From Shopify:

CLV gives you crucial insight into how much money you should be spending on acquiring your customers by telling you how much value they’ll bring to your business in the long run. Rather than just racing to keep your head above water, you’ll be able to understand which customers you should be focusing on and, more importantly, why you should be focusing on them.

You need to do a few calculations to figure out your CLV, which Shopify goes into great detail on their post. Highly recommended for new and advanced store owners.