EFuturesCFO · Ecommerce Suite
Customer Lifetime Value & Retention
Calculate LTV by segment, model cohort retention over 5 years, and quantify the ROI of retention investments like email programs and loyalty rewards.
Executive Summary
5-Year Cohort Revenue
Annual revenue and cumulative gross profit from a 1,000-customer cohort
LTV by Customer Segment
Lifetime value distribution across purchase frequency tiers
Retention Curve
Customer retention at key day milestones
Retention Investment ROI
Impact of email and loyalty programs on LTV
Executive Recommendations
Actions to increase retention and customer lifetime value
Methodology
LTV = Annual GP per Customer × Average Lifespan. Lifespan = 1 ÷ (1 − Annual Retention Rate). Cohort model starts with 1,000 customers, applies yearly retention decay and AOV growth. Retention curve uses exponential decay: (Retention Rate)^(days/365). Segment LTV uses estimated order counts per tier.