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Why we picked it This is a plain, visual walk through the same formula for a founder who assumed lifetime value was a subscription-only idea: average order value times purchase frequency times how long a customer stays. It is from Shopify itself, so it speaks in the language of a regular store selling one-off products rather than a recurring plan. Watch it to get the math straight, then go build the number on your own order history.
What Shopify Customer Lifetime Value (CLV) Is & How to Calculate It
On Shopify (YouTube) by Shopify Short explainer, under 10 minutes
- Even with no subscription, a repeat customer has a lifetime value: it is just how many times they come back multiplied by what they spend each time.
- The three inputs you actually need are average order value, purchase frequency, and average customer lifespan, all pullable from your order data.
- Aim to keep customer lifetime value comfortably above acquisition cost (a rough 3 to 1 is a common target) so your ad spend is not quietly losing money.