eCommerce Analytics

Customer Lifetime Value is the most critical metric in determining how healthy your customer file is. Why, then, does traditional CLV analysis perform so poorly for online retailers?

Consider two customers: The first bought an item for $40 two years ago and hasn’t returned to the site since. The second has not yet bought anything but visits the website every day and eagerly clicks on marketing emails. Traditional CLV, which relies purely on past purchase behavior, says customer 1 is worth more than customer 2 but that’s unlikely to actually be the case.

Read The 3 Biggest Factors You’re Not Considering in Customer Lifetime Value »