← Learn
Customer lifetime value
What a customer is worth over the whole time they buy from you, not just on their first order.
Example
Two customers both cost $50 to acquire. One buys once for $80 and never returns. The other buys $60 every few months for two years. Judged on the first order alone they look similar; judged on lifetime value they're not close.
Why marketers care
Optimising acquisition spend purely on first-purchase ROAS can systematically favour channels that bring in one-and-done customers over channels that bring in loyal ones.