The Customer Lifetime Value (LTV) section of our dashboard provides valuable insights into the profitability of your customer base over time. It's important to note that the LTV shown in this section is based on Accumulated Profits, regardless of which tab you have selected in the Cohort Analysis table.

What is LTV based on Accumulated Profits?

LTV based on Accumulated Profits takes into account the total profits generated by each customer throughout their entire lifespan with your business. It considers not only the initial purchase but also subsequent purchases, giving you a more comprehensive understanding of the long-term value each customer brings to your business.

You can read more about how we calculate LTVat Nozzle here

How can I calculate LTV based on sales?

If you're looking to calculate LTV based on average sales you can do so by exporting the sales data using the Download button available in the dashboard.

Once you have exported the sales data, you can calculate the average values for each component of the formula. (Average order value x Purchase Frequency x Retention period)

Exporting Sales Data for LTV Calculation

To export the sales data, simply click on the Download button in the dashboard. This will provide you with a file that contains all the necessary information to calculate an LTV based on sales.

We would usually suggest that the simple LTV formula outlined above is not the most optimal method for calculating LTV - this is because using averages in this way dilutes the data and doesn't take into account how individual customers behave in the way that a more sophisticated calculation does.