Customer Lifetime Value (CLV)
Posted: Sat Jan 04, 2025 3:36 am
Tracking CLV is important because it drives brand loyalty. The customer lifetime value KPI provides data on the average amount of money a customer will spend over the course of their interaction with the chinese overseas asia database business. CLTV measures the return you get on the cost of acquiring customers and shows the business’s ability to retain customers. The higher the CLV in proportion to the AOV, the higher the purchase frequency.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost ( CAC ) is the amount a business or eCommerce store spends to acquire a customer. It is a critical eCommerce KPI because it tells business owners and marketers how much they are spending to acquire a customer. If the CAC is less than the Average Order Value, it indicates that the marketing campaigns are working well, but if the CAC is greater than the AOV, then the campaigns should be re-optimized to reduce the CAC. It can be calculated by dividing the costs of the campaigns and the customers acquired. Calculating the CAC also helps in allocating the budget for the campaigns; for example, if you want to acquire 100 new customers and the customer acquisition cost is $10, then the budget would be $1000 (CAC * # of customers).
Customer Acquisition Cost (CAC)
Customer Acquisition Cost ( CAC ) is the amount a business or eCommerce store spends to acquire a customer. It is a critical eCommerce KPI because it tells business owners and marketers how much they are spending to acquire a customer. If the CAC is less than the Average Order Value, it indicates that the marketing campaigns are working well, but if the CAC is greater than the AOV, then the campaigns should be re-optimized to reduce the CAC. It can be calculated by dividing the costs of the campaigns and the customers acquired. Calculating the CAC also helps in allocating the budget for the campaigns; for example, if you want to acquire 100 new customers and the customer acquisition cost is $10, then the budget would be $1000 (CAC * # of customers).