Customer Lifetime Value (LTV) · Retail
Customer Lifetime Value (LTV) for Retail.
The total revenue a customer is worth.
Retail that compounds across channels.
Finance & Strategy · Retail
Why retail 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.
Retail margins are tight and customer attention is fragmented. SAZ helps retailers — physical-first, DTC, and omnichannel — sharpen strategy, modernize systems, and build the AI-powered demand and operations 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 retail.
Omnichannel margin and inventory
Customer acquisition cost and LTV
In-store experience and labor
Loyalty and lifecycle
Run the numbers
Open the customer lifetime value (ltv).
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Customer Lifetime Value (LTV) · Retail
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