There's a lot you can do with the LTV report: CAC analysis, financial planning, sales projections, churn rate analysis, and more.
But for many, its #1 value is its ability to measure meaningful differences in the LTVs of your customers. By applying filters to isolate different cohorts, you can identify the traits shared by your top customers and the traits shared by your worst. This gives you a clear path towards attracting more high-value customers while moving away from lower-ROI marketing.
This process is the basis of customer-centric businesses. And because it's so critical, we created a new report that achieves the same goal much more efficiently.
With the new LTV Drivers report, we automated the process of finding the most significant drivers (both positive and negative) of your LTVs and repurchase rates. Instead of having to run a separate LTV report each time you want to measure the impact of a different customer trait, your LTV Drivers report will identify and rank your most impactful factors for you.
The report is split into three sections. Some sections are only available for PLUS members, while others are available for both PRO and PLUS:
The first section ranks the products, tags (customer tags and/or order tags), and discount codes that correlate with the greatest differences from your average LTV.
On the left side, you'll see the top positive factors measured in terms of percentage increase over average LTV and overall 24-month LTV. In the example above, customers whose orders were tagged "Active Subscriber" have an average 24-month LTV of $265, which is 257% greater than an average customer.
On the right side are the top negative factors associated with LTV. In this example, customers who ordered the "Vegan Marzipan Shake Subscription" had far lower LTVs than average.
The "Insights" section is similar to LTV Drivers, except it focuses on retention metrics.
Insights in green text highlight similarities in customers with the highest repurchase rates, while insights in red text highlight similarities in customers with the lowest repurchase rates.
And at the bottom of the report, you’ll find a customizable table that allows you to dig deeper into your top drivers by toggling dates, applying filters, and analyzing other factors.
Although LTV Drivers and Insights are only available for products, tags, and discount codes, the Breakdown table allows you to compare 24-month LTVs based on differences in:
You can quickly identify each factor's influence on LTV relative to your average by noting the color: factors that correlate with higher-than-average LTV are highlighted in shades of green, while negative factors are highlighted in shades of red/orange.
You can find your LTV Drivers in the "Lifetime value" tab of your left sidebar, or you can just click here.
For a step-by-step walkthrough of how to interpret the report, you can refer to the help center article here.
As always, we'd love to hear your questions, feedback, or any ideas you have related to this report or anything else. Just let us know at hello@lifetimely.io!
