LTV Overview

The StoreHero LTV Overview screen provides valuable insights into the lifetime value (LTV) of your customers, helping you understand the additional value generated from repeat purchases after their initial sale.

​High-Level Metrics

Net Sales Overview

The LTV Overview screen displays key metrics such as net sales, new customer net sales, and repeat customer net sales. These metrics are also shown as percentages, providing a quick reference to understand the contribution of new versus repeat customers.

Comparison to Store Overview: While these metrics may be similar to those found on the Store Overview page, having them here offers a focused view on customer retention and lifetime value.

Customer Acquisition Cost (CAC) and Lifetime Value (LTV)

Cost and Value Analysis

For a selected time period (e.g., the last 90 days), you can analyse the cost of acquiring new customers and the profit generated from them during that period. For example, if it costs €15 to acquire a customer and they generate €24.56 in profit within their first 90 days, this indicates a positive return on investment.
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LTV to CAC Ratio

This ratio shows the return on every euro spent on acquiring a customer. For instance, if the LTV to CAC ratio is 1.56, it means that for every €1 invested, you receive €1.56 in gross profit within the first 90 days of customer engagement.
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Purchase Frequency and Repurchase Rates

Behavioural Metrics

The LTV Overview also tracks purchase frequency and repurchase percentages over different periods. These metrics help you understand how often customers are returning to make additional purchases and the overall health of your customer retention strategy.
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60-Day LTV

The fixed LTV for specific periods, such as 60 days, shows the average gross profit generated from new customers within that timeframe. This metric is crucial for assessing the short-term value of your customer base.

LTV and Repurchase Trends Over Time

Metric Representation

The overview screen allows you to visualise LTV, repurchase rates, and new versus repeat customer percentages over time. This helps you track how these metrics are evolving and identify trends in customer behaviour.
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Lifetime Value by First Purchase

This feature enables you to analyse which products are most effective at driving not only initial sales but also repeat purchases. For example, you can see the total revenue generated from customers who purchased a specific item first, the profit from these customers, their cumulative orders, and their repurchase percentage.
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Product Performance Insights

Product Impact on Retention

By understanding which products lead to higher repurchase rates and greater lifetime value, you can identify key items that drive positive customer behaviour. This insight can guide your marketing and inventory strategies to focus on products that enhance customer loyalty.
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Time Period Comparison

You can compare these metrics across different time periods to see how product performance and customer retention are changing over time. This helps you adjust strategies in response to shifting customer preferences and market conditions.
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How to Use the LTV Overview Screen

Monitor High-Level Metrics

Begin by reviewing the net sales and customer breakdowns. Pay close attention to the balance between new and repeat customer sales to gauge the effectiveness of your retention efforts.
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Analyse CAC and LTV

Use the LTV to CAC ratio to assess the profitability of your customer acquisition strategies. A positive ratio indicates that your investments in acquiring new customers are yielding profitable returns.
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Track Purchase Behaviour

Regularly monitor purchase frequency and repurchase rates to ensure that your customers are returning to make additional purchases. This is a key indicator of customer satisfaction and loyalty.
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Evaluate Product Impact

Analyse the Lifetime Value by First Purchase data to identify which products are most effective at driving repeat business. Use this information to prioritise these products in your marketing and sales strategies.
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Compare Time Periods

Use the time period comparison feature to track how your LTV metrics are evolving. This will help you identify successful strategies and areas needing improvement.

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The StoreHero LTV Overview screen is an essential tool for maximising customer lifetime value and improving your business’s profitability. By closely monitoring these metrics, you can make informed decisions that enhance customer loyalty and drive sustainable growth. If you have any questions or need further assistance, our support team is always available to help.