AOV & CLV Calculator
Calculate Average Order Value and Customer Lifetime Value.
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Beyond the First Sale: AOV and CLV Explained
Focusing only on the first sale is shortsighted. Successful stores optimize for Average Order Value (AOV) and Customer Lifetime Value (CLV).
Average Order Value (AOV): The average amount customers spend per transaction. Increase this with bundles, upsells, and free shipping thresholds. Formula: `Total Revenue / Number of Orders`.
Customer Lifetime Value (CLV): A prediction of the net profit attributed to the entire future relationship with a customer. It shows the long-term value of acquiring a new customer. A simplified CLV formula is `AOV * Average Purchase Frequency * Average Customer Lifespan`.
Our tool provides a simple way to estimate these values to help you shift your strategy towards long-term profitability.