Customer Lifetime Value

This report lets you see how effectively each employee is capturing a customer’s information at the time of a sale.

  • Role

    Owner / Marketing Manager

  • Job

    Promotional Planning

  • Recommended Use


Benefits to You:

Maximize profits by creating targeted marketing campaigns that increase CLV.
  • Generally 80% of your profit comes from 20% of your customers. When you find out which of your customers are responsible for the greatest volume of sales, show them their value with specific offers and rewards. Rewarding valuable customers will in turn increase their lifetime value!
Identify Customers in need of specific attention.
  • Cultivate relationships with customers who are statistically “at-risk” of migrating way from your store.
  • Identify and reach out to customers who no longer shop with you.
Align your team around the value of returning customers
  • Use this report to train your employees about the value of customer retention.

How it's calculated:

  • Historic CLV (customer lifetime value) is the total amount of spending for each customer since they began shopping with you.
  • Days Since Last Purchase is the total number of days that have passed since each customer made a purchase at your store.
  • At Risk is any customer whose days between visits to the store is greater than 80% of all your the customers. This means that 80% of all customers have a lower number of days between visits.
  • Dormant is any customer whose days between visits is greater than the value at 90th percentile of the distribution. This means that 90% of all customers have a lower number of days between visits.

Turbocharge this report:

  • Add a Status filter to narrow your report to Active, At-Risk, or Dormant customers.
  • Add a Days Since Last purchase filter to find customers who have not been in for a specific period of time.
  • Add a Category filter to identify customers who have made a purchase in a specific category and how that affects their overall buying behavior.

Next Steps:

  • Identify customers you are looking to contact with a promotional campaign.
  • Build a promotional email.
  • Export the email list of customers from this report, or, add phone number dimension and call customers with a targeted offer.
  • Use this report to survey your customers about why they did not return for a follow up purchase. The knowledge gained might just make you a better store operator!