Article

Ecommerce Customer Lifetime Value - LTV:CAC Benchmarks, Churn Diagnostics, and Repeat Purchase Playbooks

Luca · ask-luca.com Free Intermediate

Goes beyond the LTV formula into churn diagnostics - why a cohort's LTV curve flattens - which is the more useful, actionable half of the LTV conversation for most founders.

  • LTV should be benchmarked against CAC, not viewed in isolation.
  • Churn diagnostics identify which stage of the repeat funnel is actually broken.
  • Repeat-purchase playbooks tie directly back to LTV improvement, not just acquisition.
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The question it answers

  1. How do I calculate customer LTV for my D2C brand - on revenue or on margin?

Read with it

  1. Ties LTV back into the broader unit-economics stack - CAC, contribution margin, ROAS - so you don't calculate LTV in a vacuum... getfairview.com Article D2C Unit Economics Metrics Every Brand Must Track Fairview
  2. A Shopify-specific breakdown that acknowledges the real data-quality challenges (multi-channel orders, guest checkout, refunds)... sarasanalytics.com Article Shopify LTV: Formula, Metrics & Challenges (2026) Saras Analytics
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