In this episode of Add To Cart, we are joined by Josh Newport from Shopify Plus to discuss the best growth metrics for your eCommerce growth.
Questions answered in this episode include…
- What is considered a healthy growth rate for an eCommerce business?
- How do you balance profitability along with revenue growth?
- What is customer lifetime value and how do you measure it?
- How do you decide which metrics are right for your business and how do you report on them?
Josh’s most basic calculation of Customer Lifetime Value looks like this…
AOV x Customer Purchase Frequency Per Year x % Margin = CLV
Regardless of the calculation, the key is keeping the measurement consistent over time!