Customer lifetime value (LTV)
Customer lifetime value (LTV) is the total revenue — or, better, profit — a customer generates over their relationship with the business. Historical LTV measures what customers actually spent; predictive LTV estimates the future.
Formula
Historical LTV = Total revenue (or profit) from a customer cohort ÷ Customers in the cohort
Example
A cohort of 100 customers spent $9,000 over 12 months → historical LTV = $90 per customer.
In Analify
Analify shows customer cohorts and repeat purchases from Shopify — historical numbers, not predictions — next to acquisition spend.
Questions
What is LTV:CAC?
LTV divided by CAC. It shows how many times a customer pays back what it cost to acquire them.
Revenue LTV or profit LTV?
Profit LTV is more useful for budget decisions, because revenue ignores product and shipping costs.
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