Despite the confusion around all its acronyms (CLV, CLTV, LCV, & LTV,) knowing your true Customer Lifetime Value can be very beneficial in making sure that you’re not spending too much on advertising per new customer acquired. It does take some time to be able to calculate a customer lifetime value but our plugin will get you as accurate data as possible.
Our RO WooCommerce Plugin calculates the number of repeat customers based on users returning to the site and purchasing multiple times. It also averages out the total spent per customer across all their orders (be it one or twelve) to give you an accurate LTV (lifetime value.)
When calculating ROI (return on investment,) keep in mind that the dollar amount that we’re showing is the revenue from the order, and NOT profit derived from each customer. Many marketers like to compare CPA (cost per acquisition) to average profit derived from a new customer to make sure they stay in the green. To calculate average profit per new customer you’d need to factor in your markups, overhead, advertising costs, etc.
Finding & Viewing Your CLV Report in RO WooCommerce
Go to your WordPress Back End & Hover Over “Red Olive” > Click “RO WooCommerce” > “General” Tab > Under “Customer Lifetime Value” Click on the “View Report” Link.
Here you will see a daily breakdown of that day’s LTV as well as the number of repeat customers that your WordPress & WooCommerce Shopping Cart have. Keep in mind that your lifetime value and number of repeat buyers will be unique to your industry and company.
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