What is Customer Lifetime Value (LTV) reporting?

Customer Lifetime Value (LTV) measures the total revenue generated by a customer over the duration of their relationship with a business.

In marketplace analytics, LTV reporting helps businesses understand the long-term value of acquiring new customers and the profitability of customer acquisition strategies.

MerchantSpring uses sales and customer transaction data to estimate the lifetime value generated by repeat customers.

Why LTV Is Important

Customer Lifetime Value helps businesses evaluate:

• customer retention performance
• long-term revenue potential
• marketing investment effectiveness
• customer acquisition strategy

Understanding LTV helps determine how much businesses can invest in acquiring new customers while maintaining profitability.

How LTV Is Calculated

LTV calculations typically consider:

• total revenue generated by a customer
• number of purchases made
• purchase frequency
• average order value

These factors help estimate the long-term value generated by a customer relationship.

How to Analyse LTV in MerchantSpring

1. Navigate to Reports → Customer Insights.
2. Select the Customer Lifetime Value report.
3. Apply filters for marketplace or time period.
4. Review LTV metrics across customer segments.

These insights can help guide marketing and retention strategies.

Notes: 

• LTV analysis depends on available customer-level data.
• Longer time horizons provide more accurate lifetime value estimates.
• LTV is often analysed alongside Customer Acquisition Cost (CAC).