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Dev.to
5/9/2026
LTV (Customer Lifetime Value) Calculation. 5 Common Methods for EC Operators

LTV (Customer Lifetime Value) Calculation. 5 Common Methods for EC Operators

Short summary

E-commerce operators can calculate LTV five ways; pick based on business stage and data maturity. Use LTV/CAC = 3:1 as the baseline investment lens. Measure prerequisites (AOV, RPS, CAC) daily, compute LTV quarterly, and always decompose by channel and cohort—avoiding the averages-hide-problems trap.

  • •Five LTV calculation methods; choose by business stage
  • •Use LTV/CAC = 3:1 baseline for investment decisions
  • •Decompose by channel and cohort; totals are misleading

Generated with AI, which can make mistakes.

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