Are you struggling to find the best performing marketing campaigns for your Shopify store? Look no further than customer lifetime value (LTV) cohort analysis. By using LTV analysis, you can predict future customer value and save time and money on marketing efforts.
Lifetime Value (LTV) is a metric that shows the total revenue generated by a customer before they churn. By calculating your customer cohort's LTV, you can get a better idea of how much that cohort will add to your overall revenue and if you can justify the marketing spent on that campaign.
Shopify makes it easy to see your customer cohorts Lifetime value with the help of a third-party app called By the Numbers. This app provides you with complete LTV analysis for your customers and allows you to create targeted campaigns based on your customer's LTV.
After performing LTV cohort analysis and identifying the campaigns that show the most potential, it's time to double down on those marketing efforts. By reallocating your marketing budget to campaigns that have a higher LTV, you can optimize your marketing spend and boost your ROI. Keep track of the performance of each campaign and adjust your strategy as necessary to make the most of your marketing efforts. By using LTV analysis to inform your marketing decisions, you can make data-driven decisions that lead to success.
In addition to analyzing past revenue, LTV cohort analysis can also help you predict future revenue. One of the most valuable metrics in the LTV report is the "Unrealized Sales" field, which represents the predicted future sales of a customer. By increasing customer retention and running targeted email marketing campaigns, you can boost this number and unlock a significant amount of revenue.
To increase retention, consider implementing loyalty programs or offering personalized recommendations based on past purchases. In terms of email marketing, try sending personalized product recommendations, abandoned cart reminders, and exclusive offers to your most valuable customers. By tailoring your email campaigns to each customer segment and using data to inform your strategy, you can increase customer engagement and unlock unrealized sales.
For more tips on improving customer retention and loyalty, check out our blog post on the topic.
Start using LTV cohort analysis to improve your marketing campaigns and boost your Shopify store's success. Install By the Numbers today and get started with LTV analysis for your store.