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1 What’s a “Normal” CLV?
All the Caveats
• These numbers will look different based on industry, what you sell, etc.
• Use these numbers to guide the way you think about your business strategy, not as a final ruler on your business success
Average CLV
CLV-30 CLV-90 CLV-365$0
$50
$100
$150
$200AVERAGE CUSTOMER LIFETIME VALUE
Higher AOV & ANO
$25 $50 $75 $100 0
1
2
3
4
CLV-365, AOV-365, AND ANO-365 BY REVENUE QUARTILE
Q1 Q2 Q3 Q4
Aveage order value
Aver
age
num
ber
of o
rder
s79% higher customer lifetime value!
Average CLV
$0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 $3000
1
2
3
CLV-365, AOV-365, AND ANO-365 BY INDUSTRY SEGMENT
Apparel Food Housewares/Home FurnishingsHealth/Beauty Mass Merchant Computers/Electronics
Average order value
Aver
age
num
ber o
f ord
ers
Top Companies Acquire Customers Faster
0 6 12 18 24 30 360
50K
100K
150K
200K
250K
TOTAL CUSTOMERS
Q1 Q2 Q3 Q4
Months since first order
Tota
l cus
tom
ers
2 Strategies to Achieve Higher CLV
Acquire more customers1
2
3
4
Acquire better customers
Increase Average Order Value (AOV)Keep Customers Coming Back
4 Drivers Fueling Performance in Today’s Fastest Growing Ecommerce Companies
1 & 2: Customer Acquisition
CLV-30 CLV-90 CLV-365$0
$50
$100
$150
$200
AVERAGE CUSTOMER LIFETIME VALUE
Cust
omer
life
time
valu
e
The top 10% of customers is worth 6x more than the average customer.
Acquire Better Customers
CLV-30 CLV-90 CLV-365$0
$20
$40
$60
$80
$100
MEDIAN CUSTOMER LIFETIME VALUE
Cust
omer
life
time
valu
e
Strategies to Acquire More/Better Customers
Identify the customers you do (and don’t) wantAlgorithmic vs. narrative personasConversion opportunities beyond the checkout
What kind of customers do you
want?
Buyer Personas Tell Us:
• Demographic and behavioral information
What types of content or experiences attract them
What types of messaging and channels influence their behaviors
What kind of customers don’t you
want?
Service Demanders
Revenue Reversers
Promotion Maximizers
Spending Limiters*
Algorithmic vs. Narrative PersonasAlgorithmic Buyer Personas
Uses automated numeric correlations to predict behavioral responses
Narrative Buyer PersonasUses psychographic dimensions to create experiences that attract and influence
Content
TimePlace Time
Conversion Opportunities
Learn More About Your Prospective Customers
3. Increase Average Order Value
Q1 Q2 Q3 Q4$0
$25
$50
$75
$100
$125
AOV BY QUARTILE
Quartile
Aver
age
orde
r val
ue
Strategies to Increase Average Order Value
Onsite Personalization & SegmentationProduct Page RecommendationsUpsell & Cross Sell
Onsite Personalization & Segmentation
Product Page Recommendations
Upsell & Cross Sell
4. Keep Customers Coming Back
68% of customers will never purchase a second time.
1 2 3 4 5 60
20
40
60
80
100
PERCENT OF CUSTOMERS PLACING AT LEAST N ORDERS IN THEIR FIRST YEAR
Percent
Number of orders
Perc
ent
2 3 4 5 6 7 8 9 100
0.25
0.5
0.75
1
REPEAT PURCHASE PROBABILITY DURING THE CUSTOMER'S FIRST YEAR
Number of orders
Repe
at p
urch
ase
prob
abili
ty
Strategies to Keep Customers Coming Back
Abandoned Cart NurturingReorder MarketingRe-engagement Campaigns
60% of ecommerce marketers don’t know their abandoned cart rate
Go Beyond the Coupon Code
Personalized emails improve click-through
rates by 14%.Source: The Aberdeen Group
Abandoned Cart Nurturing
Abandoned Cart Nurturing
Abandoned Cart Nurturing + Upsell/Cross Sell
Reorder Marketing
Subscription Options
Re-engagement Campaigns
3 Making This Work for You
Acquire more customers1
2
3
4
Acquire better customers
Increase Average Order Value (AOV)Keep Customers Coming Back
4 Drivers Fueling Performance in Today’s Fastest Growing Ecommerce Companies
Customer Lifetime Value is the common thread.
Optimizing for quality
Optimizing for quality
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