#everything-marketing
Thread
Question for anyone using Lifetimely to pull LTV data:
How do you ultimately land on the final LTV figure that you trust? Here’s what I mean:
• lifetimely cohort analysis may show you an $100 accumulated average by month 6 (accumulating bc it includes all new cohorts that started on month 2,3,4, etc.)
• lifetimley order repurchase rate report also gives you a certain multiple that some plug in to this formula: AOV x Purchase Frequency
• others ignore lifetimely and just do total rev / total customers and use that.
Is one of the above more accurate than the other? Is there no true metric and you kinda just have to weigh everything against each other?
Would love some insight in how others view this. Thanks!
First thing I would say here is that when measuring LTV always use gross margin instead of total revenue! The V component of LTV, should really be the true “value” of the customer and not just the revenue.
@Thomas Gleeson in Lifetimely is it gross margin or revenue based?
You’ve got the option to navigate between the two!
Same as in StoreHero
If you’re building out some LTV:CAC targets, if you calculate LTV on revenue, and you hit your targets here - you’ll end up in hot water very quickly!