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Your Favorite eCom Newsletter (Once you know it exists)
Your Favorite eCom Newsletter (Once you know it exists)
CUSTOMER LIFETIME VALUE
Leave behind complex formulas and countless spreadsheets. Open the TrueProfit app to quickly determine each customer's impact on your business for effective decisions.
Customer Lifetime Value (LTV) shows the long-term value each customer brings to your e-commerce business, helping you retain customers, reduce churn, and boost profits.
Yet, calculating LTV manually is complex and error-prone, requiring data from various sources.
TrueProfit simplifies this with an all-in-one dashboard tracking key metrics like total customers, repurchase rates, CAC, and LTV, all in real-time with minimal effort.
Implementing an effective retention or acquisition strategy can significantly improve your financial outlook.
With TrueProfit's LTV dashboard, you can gauge how much customers are willing to pay and their likelihood of repeat purchases. Plus, a positive CAC:LTV ratio indicates effective acquisition efforts.
All of these insights allow you to refine strategies to enhance financial performance.
You want your store to grow, but not at the expense of profitability.
TrueProfit assists you in achieving this balance by tracking Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC)—two essential metrics for sustainable growth.
When LTV substantially exceeds CAC, your business might be profitable. However, if CAC is too high relative to LTV, you risk financial losses.
By clearly comparing these two metrics, you can target high-value customers and drive profitable growth.
Feeling like future earnings are unpredictable? Not anymore.
With TrueProfit's LTV, you can forecast revenue growth rate using data instead of estimates.
Allocate your marketing budget where it delivers the best return and avoid overspending on customer acquisition before it’s too late.
Take the guesswork out of understanding your customers’ value with TrueProfit
We're here to help with any questions you have about plans, pricing, and supported features.
With TrueProfit’s customer lifetime value dashboard, you’re able to see: total customers, repurchase rate, customer lifetime value (LTV), customer acquisition cost (CAC), and LTV:CAC ratio.
In TrueProfit, you can filter by country. In particular, the country filter allows you to see from which country your customers are generating more value (see photo below).
The greater LTV:CAC ratio is, the more revenue is brought into. Recognizing this can help you understand how customers in different countries spend and guide where to execute your next business plan.
The LTV:CAC ratio measures the relationship between a customer's lifetime value (LTV) and the cost to acquire them (CAC). It helps assess how effectively a business is acquiring customers relative to the revenue they generate.
A high LTV:CAC ratio means customers generate more value than it costs to acquire them, indicating a profitable strategy. Conversely, a low ratio may suggest acquisition costs are too high, impacting profitability. Businesses typically aim for a ratio where LTV significantly exceeds CAC to ensure healthy growth.
Users of TrueProfit's Basic plan and above can access the customer lifetime value report. Learn more about our pricing plans here.
Scale smarter, not harder, with customer lifetime value data at your fingertips.
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