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Why Customer Lifetime Value Can Kill Your eCommerce Business (Use This Metric Instead)

Customer lifetime value is an important metric for eCommerce companies to understand and measure.

Customer lifetime value is an average of how much a customer is worth to you over their lifetime.

What do you do if your business has only been operating for a short time period?

6 months?

1 year?

👇 I recorded a video going over this below

Customer lifetime value will be useless.

30, 60, 90-day customer values are a much more important metric for your eCommerce business.

Factors including your SKU set, your average consumption rate, and your cash flow will dictate the specific time periods you should account for.

The key is to choose a time window that you can impact and that you can afford to wait for from a cash flow perspective.

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