The “Lifetime Value” dashboard provides a comprehensive view of the projected total revenue generated by your customers, helping you evaluate the long-term profitability of your user base.
How we get these data
LTV data is gathered from Shopify API App Events to support decision-making and marketing budget optimization.
Understand the dashboard
LTV (Lifetime Value) is the total projected revenue a paying customer will bring to the application throughout their usage period.
Calculation Logic
Basic formula for SaaS Subscription model:
LTV = ARPU / Churn Rate
Note: Churn Rate here should be the % of users cancelling paid plans monthly (User Churn Rate).
This line chart visualizes the trend of your projected LTV over your selected time period (Day, Week, Month), with a percentage comparison against the previous 31-day period, allowing you to monitor how customer value changes in response to pricing or retention shifts.
The breakout table provides a detailed daily view of the LTV values that contribute to this trend, helping you pinpoint specific days of fluctuation.
The panels below offer a quick historical comparison of your current LTV against previous months and years to identify if your long-term customer value is growing or declining.
How LTV data can benefit you
Marketing Compass: LTV serves as a critical guide to determine your Customer Acquisition Cost (CAC) limit. By knowing a customer's total value, you can decide exactly how much you can afford to spend to acquire a new user.
Golden Rule: It allows you to monitor your LTV:CAC ratio. A healthy and sustainable SaaS business typically maintains a ratio where LTV is greater than CAC (ideally an LTV:CAC ratio > 3:1).
