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