Hey just wanted to point out that you calculated AVERAGE CUSTOMER VALUE, not CLTV. Doesnt CLTV require us to know the time elapsed between the first and last purchases for every customer?
Question: let's say our online store has been online for a few years (e.g. 2019-present), do we export and calculate CLV per year? Or do we do total? This is not clear as on the video as you exported all orders (all time). Thank you for the video, the rest was very clear.
Hey guys! If you have any questions about calculating your Customer Lifetime Value for your Ecom store, please let me know! Also check out my free course where I show you how to get into the minds of your IDEAL customers and drive more traffic and conversions to your Ecommerce store! Get the free course here: keycommerce.com/product-page-mastery/
Good video, but I'm a little confused.. you exported ALL orders meaning that SOME of those customers will order again/spend more which will add to their value, thus impacting the CLV. My question is: To avoid this, would you factor into the equation average lifetime also?
You should probably explain how much you are willing to pay to buy a new customer based on your customers CLV. Fx how much would you spend on marketing based on CLV.
So should I include order counts for every type of order or only purchase and should it be for entire year or only month by month? Should i calculate a separate customer lifetime value for those not in term contract versus those who are in term To show the difference in value monthly? CaN i apply same formula for department by product to show what product is more valuable?
Keep it simple. It’s per customer - so do it per customer. You’re trying to figure out how much each customer is worth to your store. If you want to split it up by time period, product category, etc you can.. it just depends on what metrics you need to have to make better business decisions.
Hi Sam, how do you recommend calculating LTV just for orders that contain particular product types. Since I do not believe Shopify will allow you to filter this when downloading the order report, it would have to be done in Excel.
What about when a customer has an exchange, and Shopify shows they have 2 orders, and there's no price difference? Shopify then shows they have 2 orders.. but the 2nd order was just a variant exchange.
WARNING this video fails to account for the fact that Shopify's export currently shows the customer's email *for each item* in the order. I.e. if a customer orders 3 items at once, their email appears 3 times. So you must first eliminate all the 'per-order duplicate emails' or else your Average Perchases Per customers will be significantly inflated.
I'm having an issue with an inflated # of orders due to multiple products in an order. It's counting how many products were sold vs. orders placed. Anyone else? Recommendations?
If I understand correctly, your data is laid out so if a customer has ordered multiple products in one order, then you have a separate row for each product sold in an order? If so, a quick way to great around this would be to create a new sheet and use =unique(RANGE), for the range include the Email address and order ID (assuming you have one) from your main data. This will give you a unique list of every email address + order ID and can then use countif based on this. Throw some example data in a google sheet and share in here if you're still having trouble and I'll see how I can help ya.
![[AOV Explained] Average Order Value Calculation for Ecommerce](http://i.ytimg.com/vi/yT-_mEeTgkg/mqdefault.jpg)
![[AOV Explained] Average Order Value Calculation for Ecommerce](/img/tr.png)
Hey just wanted to point out that you calculated AVERAGE CUSTOMER VALUE, not CLTV.
Doesnt CLTV require us to know the time elapsed between the first and last purchases for every customer?
Wow. This is one of the best videos describing CLV and different ways to improve your ecomm business that I've ever seen. Fantastic job, Sam!
Thanks Nate!
This is exactly what I was looking for. Easy & fast to replicate and this has a huge value, thanks a lot!
Throughout and to the point. Keep posting
Question: let's say our online store has been online for a few years (e.g. 2019-present), do we export and calculate CLV per year?
Or do we do total? This is not clear as on the video as you exported all orders (all time).
Thank you for the video, the rest was very clear.
Hey guys! If you have any questions about calculating your Customer Lifetime Value for your Ecom store, please let me know! Also check out my free course where I show you how to get into the minds of your IDEAL customers and drive more traffic and conversions to your Ecommerce store! Get the free course here: keycommerce.com/product-page-mastery/
Good video, but I'm a little confused.. you exported ALL orders meaning that SOME of those customers will order again/spend more which will add to their value, thus impacting the CLV. My question is: To avoid this, would you factor into the equation average lifetime also?
Awesome! why Shopify doesn't show this in their reports??
this video was really helpful.. thank you for putting out these great content Sam! You are the best
You should probably explain how much you are willing to pay to buy a new customer based on your customers CLV. Fx how much would you spend on marketing based on CLV.
So should I include order counts for every type of order or only purchase and should it be for entire year or only month by month? Should i calculate a separate customer lifetime value for those not in term contract versus those who are in term To show the difference in value monthly? CaN i apply same formula for department by product to show what product is more valuable?
Keep it simple. It’s per customer - so do it per customer. You’re trying to figure out how much each customer is worth to your store. If you want to split it up by time period, product category, etc you can.. it just depends on what metrics you need to have to make better business decisions.
Hi Sam, how do you recommend calculating LTV just for orders that contain particular product types. Since I do not believe Shopify will allow you to filter this when downloading the order report, it would have to be done in Excel.
What about when a customer has an exchange, and Shopify shows they have 2 orders, and there's no price difference? Shopify then shows they have 2 orders.. but the 2nd order was just a variant exchange.
Great video! I'm running into an issue with the formula. When I add the =CountIF I'm getting 0. I've tried it on Excel and Google Sheets.
Nevermind. Figured it out! User error. Thanks so much for this!
hey, the Average Order Value video link is not working, could you please reshare it.
with the UNIQUE formula, I still find several times the same email. How come?
Intuitive!
WARNING this video fails to account for the fact that Shopify's export currently shows the customer's email *for each item* in the order. I.e. if a customer orders 3 items at once, their email appears 3 times. So you must first eliminate all the 'per-order duplicate emails' or else your Average Perchases Per customers will be significantly inflated.
I'm having an issue with an inflated # of orders due to multiple products in an order. It's counting how many products were sold vs. orders placed. Anyone else? Recommendations?
If I understand correctly, your data is laid out so if a customer has ordered multiple products in one order, then you have a separate row for each product sold in an order? If so, a quick way to great around this would be to create a new sheet and use =unique(RANGE), for the range include the Email address and order ID (assuming you have one) from your main data. This will give you a unique list of every email address + order ID and can then use countif based on this.
Throw some example data in a google sheet and share in here if you're still having trouble and I'll see how I can help ya.
Whats the difference between AOV and your CLV?
Woah, whose this handsome aussie?