Customer Lifetime Value (LTV) · E-commerce
Customer Lifetime Value (LTV) for E-commerce.
The total revenue a customer is worth.
E-commerce engineered for unit economics.
Finance & Strategy · E-commerce
Why e-commerce operators use the customer lifetime value (ltv).
Calculate customer lifetime value using average order value, purchase frequency, gross margin, and customer lifespan. LTV is the foundation for pricing, CAC budgets, and retention investment.
E-commerce has moved from a margin-rich category to one where unit economics decide who survives. SAZ helps DTC, B2B e-com, and marketplaces sharpen positioning, fix margins, and build the demand and retention programs that compound.
Benchmarks
What good looks like — typical ranges to compare against.
< 1× CAC
Losing money
1–3× CAC
Recovering — but tight
3–5× CAC
Healthy SaaS / DTC benchmark
> 5× CAC
Elite — invest more in acquisition
The formula
How customer lifetime value (ltv) is calculated.
LTV = AOV × Purchase frequency × Gross margin × Customer lifespanIndustry context
What changes when customer lifetime value (ltv) is applied to e-commerce.
Unit economics, CAC, and LTV
Site, funnel, and merchandising
Lifecycle and retention
Fulfillment and ops
Run the numbers
Open the customer lifetime value (ltv).
Free, instant, no signup.
Customer Lifetime Value (LTV) · E-commerce
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