How To Use The New Lifetime Value Feature In Google Analytics? (Question)

Start by signing into your Google Analytics account and then follow these simple steps:

  1. Step 1: Click on Reports Section.
  2. Step 2: Click on Audience.
  3. Step 3: Click on Lifetime Value.

How do I find LTV in Google Analytics?

To view LTV report:

  1. Navigate to Audience – Lifetime Value report.
  2. The top drop down allows you to select from different metrics of value.
  3. The top chart shows the typical LTV chart of the metric you selected for 90 days.
  4. The table below summarizes the 90-day LTV by acquisition channel for the metric you selected.

How do you use customer lifetime value analysis?

To calculate customer lifetime value, you need to calculate the average purchase value and then multiply that number by the average number of purchases to determine customer value. Then, once you calculate the average customer lifespan, you can multiply that by customer value to determine customer lifetime value.

How do you project lifetime value?

Lifetime Value can be calculated in many ways. In the case of a subscription model, a simple method is to take the average monthly amount expected from each customer and divide it by your churn rate (the rate at which you lose customers each month).

What is a customer lifetime value CLV and how is it estimated?

Key Takeaways. Customer lifetime value (CLV) is a measure of the average customer’s revenue generated over their entire relationship with a company. Comparing CLV to customer acquisition cost is a quick method of estimating a customer’s profitability and the business’s potential for long-term growth.

What is the formula for customer lifetime value?

The simplest formula for measuring customer lifetime value is the average order total multiplied by the average number of purchases in a year multiplied by average retention time in years. This provides the average lifetime value of a customer based on existing data.

What are the benefits of customer lifetime value?

The 5 Benefits of Customer Lifetime Value

  • Save Money. It’s cheaper to retain old customers than find new ones.
  • Better Marketing. Customer Lifetime Value leads to marketing that focuses on your customer.
  • Encourage Brand Loyalty.
  • Gain More Sales. You’ve already warmed up your customer from all that regular contact.
  • Save Time.

How many concepts are included in customer lifetime value?

The CLV model has only three parameters: (1) constant margin (contribution after deducting variable costs including retention spending) per period, (2) constant retention probability per period, and (3) discount rate.

What is CAC in marketing?

Customer Acquisition Cost, or CAC, measures how much an organization spends to acquire new customers. CAC – an important business metric – is the total cost of sales and marketing efforts, as well as property or equipment, needed to convince a customer to buy a product or service.

What is Lifetime Value in Google Analytics?

Measure lifetime value (LTV) for users acquired through different channels. The Lifetime Value report lets you understand how valuable different users are to your business based on lifetime performance. For example, you can see lifetime value for users you acquired through email or paid search.

What is user Lifetime Value?

LTV is a way of calculating the value of a new user. This is how much that user is predicted to be worth to your app, over their whole relationship with your app. LTV can serve many purposes: it can be a measure of your app’s success, a reminder of the power of user loyalty, and a tool for forecasting growth.

What is the difference between Lifetime Value and customer lifetime value?

Customer Lifetime Value is calculated at the individual level, while Lifetime Value is an aggregate metric.

Lifetime Value – Analytics Help

Calculate the lifetime value (LTV) of users who have been acquired through various channels. The Lifetime Value report allows you to determine how valuable different users are to your organization based on their overall performance over time. For example, you can see the lifetime value of users who have been acquired through email or paid search marketing campaigns. You can use this information to determine a profitable allocation of marketing resources to the acquisition of those users based on the information you have.

In order to determine which method brings in the most valuable users, you can compare users acquired through organic search with users acquired through social media, or compare social media with email marketing.

See Lifetime Value data

To view the Lifetime Value report, click on the following link:

  1. Open Google Analytics and sign in
  2. Navigate to your view
  3. SelectReports
  4. SelectAudienceLifetime Value
  5. And save your changes.

Analytics accounts with Lifetime Value data have access to this information. There are no modifications required to the tracking code. The data on Lifetime Value is cumulative for users who have been acquired throughout the acquisition date period you have selected. The information is not intended to be predictive in nature. Views of this report are accessible in both app and online formats. From March 1st, 2017, data on web views will be accessible for download.

Time elements

In the Lifetime Value report, there are two temporal aspects to consider. Dates of acquisition are between: Set this date range to define the time period in which you obtained new users for your site. Take, for example, data from users who were acquired during a single-day campaign on Black Friday, or data from users who were acquired during a weeklong campaign from December 18 to December 24. You’ll use this parameter to choose the cohort you’ll be looking at in the report. The graph’s X-axis is as follows: Currently, the lifetime value is limited to a maximum of 90 days.

The graph depicts the evolution of cumulative metric values throughout the course of a user’s career.

How metrics are calculated

Data is shown in this report as the cumulative average value per user for the time interval you have selected in the previous section (day, week, month). Consider the following scenario: If you are assessing Sessions per User on a daily basis, the report will provide a single figure every day that indicates the average number of sessions per user. The cumulative sum of the metric value divided by the total number of users gained throughout the acquisition date period is used to determine the lifetime value.

Consider the following scenario: if you acquired 100 users during the acquisition date window, the Sessions Per User calculation is as follows:

Header Day 0 Day 1 Day 2
Cumulative sessions per day 100 200 300
Sessions Per User 100 sessions /100 users =1 session per user 200 sessions /100 users =2 sessions per user 300 sessions /100 users =3 sessions per user

Conversions (transactions, goal completions), revenue, and behavior may all be examined in detail (sessions, session duration, app views).


Select whatever metrics you wish to compare in the report by using the Metric drop-down options. Comparative metrics can be selected from drop-down menus.

Available metrics

There are the following metrics included in the report:

  • Views per user (LTV)
  • Goal completions per user (LTV)
  • Pageviews per user (LTV)
  • Revenue per user (LTV)
  • Session duration per user (LTV)
  • Sessions per user (LTV)
  • Transactions per user (LTV)
  • Revenue per user (LTV).

Understanding metrics in the graphs and tables

The graph depicts the lifetime value per user for the metrics over a period of 90 days, with time intervals of days, weeks, and months between each interval. When dealing with the App Views per User (LTV) measure, for example, the average number of views during Week 1 may be 16, during Week 3 would be 22, and by Week 10 might be 35, depending on the metric. A graph depicting the evolution of cumulative metric values over time


The metrics in the table are dispersed according to the dimension you select (Acquisition Channel in the example below). There are two extra elements to the statistic you picked for the report in addition to the number of Users you gained during the Acquisition Date Range, as shown in the following table:

  • Appviews per User (LTV): The average number of appviews per user throughout the course of their lifespan. Appviews (LTV): The total number of Appviews received by all users throughout the course of their lifetime.

The metric values are shown in a tabular format.


Select the context in which you wish to evaluate your metric data from theDimensionsmenu by using the drop-down menu. Select the Dimension option from the drop-down menu. In the case of Sessions Per User (LTV), for example, you could be interested in knowing which channel generated the most number of sessions per user. (This report makes use of Analytics’ default channel definitions, and it correlates users with the channels via which they were acquired.) Depending on how you calculate your Income Per User (LTV), you may want to know which channel is responsible for gaining users who provide the most revenue on an annualized basis.

What can we do to make it better?

Understanding the New Lifetime Value Report from Google Analytics

Google introduced a new measure last year to track and compute customer lifetime value (CLV). The Lifetime Value Report may be found in the Audience part of the Google Analyticsinterface, under the Reports heading. This application records performance over the last 90 days in order to gain a better understanding of client behavior and the value they provide to your organization. This report may be monitored by channel, objectives, transactions, and a number of other characteristics. This allows you to isolate variables and understand what works for your company’s specific needs.

How Do You Read Google’s Lifetime Value Report?

With the new Lifetime Value Report, marketers will be able to assess which campaigns are successful and which marketing approaches are most effective in bringing consumers back to your website. You begin with a 90-day timeframe and track behavior for the next three months once the purchase process is completed. Using this graph, you can calculate the number of users who have visited your website in relation to the number of sessions they have participated in, goals they have achieved, revenue earned, or any other factor you wish to track.

There are many metrics you can use to determine the long-term value of your campaigns. Among them are the following:

  • Users’ average number of website sessions over a 90-day period (the average number of times clients visit your website)
  • Sessions per User (LTV). Users’ average time spent on your website, interacting with your brand (Session Duration Per User (LTV)): Customers’ average number of pages seen on your website is referred to as their lifetime value (LTV). A customer’s lifetime value (LTV) is the amount of money they spend on average over a period of 90 days with your company. Customer lifetime value (LTV): The number of times your consumers make a purchase from your brand in a typical quarterly period Goal Completions Per User (LTV): The average number of goals accomplished by a user on an individual basis. Customer tenure is defined as the number of customers that have attained a given age since their initial website visit.

Each of these measures has the potential to add value to your company’s brand. For example, knowing the average number of pageviews per user may help you determine whether your website is sticky and beneficial to returning consumers, while knowing the average number of transactions per user can give you a sense of how frequently people return to your brand to make a purchase.

How Are Lifetime Value Report Metrics Calculated?

It might be difficult to comprehend the lifetime value report at first, especially if analytic and statistics are not your natural languages. Nonetheless, once you grasp the rationale behind Google’s presentation of this report, you may begin tweaking it to obtain the information you want. So, how does Google come up with this report and provide it to us in this manner? As stated on their support website, “Lifetime value is computed by dividing the cumulative sum of the metric value by the total number of users gained over the acquisition date period.” Basically, Google records whatever it is you want to track (for example, income or time spent on your site) and divides it by the total number of users to arrive at the general average for the site.

Who Can Benefit From This Report?

There are a variety of businesses and sectors that might benefit from keeping track of their customers’ lifetime value. Surprisingly, the quantity and price of the products and services offered by these businesses differ from one another. In order to better understand their consumers, consider the following three examples of firms that can measure KPIs in the lifetime value report:

  • Transactions Per Userview is a metric that eCommerce retailers may use to determine how frequently their consumers purchase from them. When clients re-enter the sales funnel and look to purchase from their brand again, marketers will have a better sense of what to expect, which will help them plan their remarketing campaigns. Using Google Analytics, a therapist may measure Revenue Per User (particularly if they import data from their accounting systems) to determine how much money consumers spend on average over the course of three months. This makes it simple to define target CPA and ROI targets for each individual user. In order to determine how many tours on average clients look at before making a purchase, a travel business can trackSession Duration Per User andPageviews Per User data. The number of sessions per user may also be reviewed to see how many times potential buyers return to the website before making a purchase
  • And

Customers spend anything from $20 to $2,000 with the firms in the instances above, and it takes them anywhere from a few minutes to a few months to complete their transaction. Every company is different, and every company may benefit from the lifetime value report.

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What Can You Do With This Report?

The value of your analytics is only as high as the activities you take to improve them. Many businesses fall into the trap of constantly monitoring analytics and reporting performance without taking any action in response to the information. However, there are other ways you can utilize this lifetime value report to direct your total digital marketing activities and make modifications to the metrics if you are dissatisfied with them.

Track Specific Campaigns

The new lifetime value report breaks down information by channel, and users can delve even deeper per ad campaign in Google Adwords to evaluate it by ad group or by keyword. This report may be used to examine how customers react when you launch a certain social media campaign or send out a marketing promotion in order to engage customers. Using the lifetime value report, the team at Conversion Works shared a case study from one of their clients with the rest of the group.

Customers that got remarketing messages a month after making a purchase saw an increase in Revenue Per User, which resulted in an increase in the average customer spend over the course of the month.

Evaluate Customer Behavior During Peak Seasons

There are seasonal ups and downs for many firms; their success during a few specific months can have an impact on their income for the entire year in many instances. Achieving client acquisition and conversion success is critical throughout this period. Through the analysis of client lifetime value over a 90-day period, companies may see when their seasonal peaks begin and take action if customers aren’t responding as quickly as they have in previous years.

Set Target ROI Goals

Once you have determined the average lifetime value of your consumers, you can define objectives for your marketing efforts that are based on this information. When a typical client at a dentist practice spends $100 per year on cleanings and stays with the dentist for an average of five years, the total lifetime value of that customer equals $500. It is worthwhile for the dentist to invest $50-$100 to gain a new customer since the value of that consumer will pay off in the long term.

Improve Your Digital Marketing With Data

The majority of the Trinity Insight staff is driven by a love for statistics and web analytics. We utilize these resources to assist our clients and help them grow their businesses. Allow us to examine your website using our information. Make an appointment with us for a free consultation, and we will do a multi-point audit of your website to identify its overall health, strengths, and potential.

Two ways to calculate customer lifetime value for ecommerce using Google Analytics data

In a nutshell, many of our clients have the same question: “How can I assess ecommerce lifetime value (LTV)?” Fortunately, the most recent episode of ourLearning Videosseries demonstrates how to accomplish this for both one-time buys and subscription users. Our step-by-step article will walk you through two different techniques of determining client lifetime value (LTV) using your Google Analytics (GA) data. During this course, you will become familiar with Littledata’s custom dimensions in GA and learn how to display your computations in Google Data Studio.

The following are examples of custom dimensions:

  • The entire amount of money a client has spent in your Shopify shop throughout the course of their relationship with you (including one-time purchases and subscription orders)
  • A Shopify Customer ID, which is a unique identification assigned by Shopify to each customer
  • Date of the most recent transaction
  • Payment Gateway
  • Number of purchases

They provide superior data to assist you in better understanding your customers’ purchasing habits, and then calculate and illustrate their lifetime value (LTV). To get started, you’ll need to export your data from Google Analytics to Google Sheets or another spreadsheet program using the CSV format. Once you’ve activated the GA add-on in Google Sheets, you’ll be able to begin working with the data.

Method 1: Calculate LTV by Lifetime Revenue, Shopify Customer ID, and Transaction Count

In the first way of estimating lifetime value, we’ll utilize the metric Transactions as the basis for our calculations. Dimensions 5 and 3 (Shopify Customer ID and Lifetime Revenue) correspond to ga:dimension 5 and 3 (Lifetime Revenue) in the ga model, respectively. To set up your report, follow the steps outlined in the figure below: Set yourMetrics Reference to Transactions and your Dimensions Reference to Custom Dimensions, and you’re done!

The following is what Google Sheets should look like once you have ran the report : Finally, you can utilize the built-in methods in Google Sheets to compute the average or median lifetime value of your customers.

Method 2: Calculate LTV by Source/Medium, Transaction ID, Shopify Customer ID, and Transaction Revenue

You may track which marketing channels bring in your most valued consumers, or those who spend the most over time, using this second technique of calculating lifetime value (LTV). Transaction Revenue is the statistic in this technique, and the metrics Source/Medium, Transaction ID, and Shopify Customer Id are used in conjunction with it. These correspond to the ga:sourceMedium, ga:transactionId, and ga:dimension1 identifiers respectively. respectively. This strategy necessitates the use of the broadest date range available in order to acquire the most amount of transactional data possible—ideally, since you first began using Littledata.

The total revenue per client and per source will be shown as a consequence of this calculation.

Build Reports in Google Data Studio

Our suggested reporting tool for ecommerce businesses is Google Data Studio, which is available for free. Why? Because it’s free, it’s strong, and it integrates really well with Google Analytics. The first step in visualizing your data is to import it into Google Data Studio by selecting Google Sheets as your source and importing it into Google Data Studio. To do so, open Google Data Studio and pick your Google Sheets file, followed by the pivot table you produced in the previous approach, and then drag it into your report.

When creating your report, make sure that your report dimension is set toga:sourceMedium and that your metrics are set toga:transactionrevenue andga:dimension1.

You may sort your traffic sources by Shopify Customer ID to determine which traffic sources are bringing in the most clients to your site.


In GA, here are some quick tips for subscription stores that are using custom dimensions. The Customer Lifetime Value of Ecommerce Sites: Three In-Depth Studies LTV obtained from GA against LTV obtained from Littledata How to Calculate the Customer Lifetime Value in Google Analytics for Shopify Stores Customer Lifetime Value (CLV) Calculation with Customized Dimensions Analytics for Subscriptions Is Littledata compatible with the ecommerce reporting tool I’m using?

Google Analytics 4: Lifetime Value – New metrics and report

GA4 releases new features on a daily basis, and today’s release is no exception: the “User Lifetime”report and accompanying metrics are among the latest additions. This new report in Universal Analytics is far more customizable than the old one, but it is also significantly more complicated.

The Google Analytics instructions do not yet provide any advice on how to utilize the tool, therefore this will be a “work in progress” article as we try to figure out how to use it. Here’s all we know for the time being.

GA4: User LifeTime Value

To get this report, just navigate to ” ExploreAnalysis Hub ” and pick ” User Lifetime ” from the dropdown menu. The screen that will emerge will look something like the one below. There are many new measures related to LifeTime Value, as you can see, in the “Metrics” section. These metrics include LTV Average, LifeTime Engagement, LifeTime Transactions, and many other metrics that are exclusive to LifeTime Value (see screenshot at the end of the post). If you compare this report to the one provided by Universal Analytics, you will see that it allows you to include more dimensions (5 at most) as table rows and construct nested pivot tables by selecting as many dimensions as columns in the report.

It is possible to notice that there are a large number of metrics accessible in the screenshot below:

GA4: LifetimeValue – Remarks

At the present, the new LTV measures have a lot of promise since, owing to Machine Learning, they bring into the Google Analytics platform KPIs that are relevant to ecommerce and that are now lacking from Universal Analytics (which is a good thing). Also new in this edition is that data is updated automatically, whereas in the previous version it was necessary to input data at intervals of 24 hours in order to make comprehensive analyses. I anticipate that the offline data will be able to be imported using the measurement protocol or API in the near future: this would allow us to access the Phygital world with a single tool!

Understanding Google Analytics ‘Lifetime Value’ with Artificial Intelligence

In terms of analytical tools, Google Analytics is without a doubt the most beneficial one ever created. Consider this: 51 percent of Fortune 500 firms utilize it on a regular basis. If you believe this is an exaggeration, simply ask them. Google Analytics is currently being used by over 3.5 million enterprises on a global basis! This application is so popular because it makes use of artificial intelligence to evaluate data and provide valuable insights into the situation. There isn’t a measure that Google Analytics can’t evaluate thanks to its powerful machine learning algorithms.

We could go on and on about how much we love Google Analytics, but that isn’t the point of this essay.

In order to get significant insights on long-term company performance, it is necessary to conduct a thorough analysis of this statistic.

We’ve already spoken about how artificial intelligence is rediscovering CLV in the present day. Now, using the Lifetime Value report created by Google Analytics, we’ll have a look at how this may be applied in real-world situations. So let’s get started.

What is Customer Lifetime Value?

The first step is to grasp what is meant by “customer lifetime value.” The entire amount of money that a client spends with a firm over the course of their customer lifetime is known as customer lifetime value. There are a variety of methods for calculating CLV, however many businesses today rely on sophisticated analytics to do so. It is critical to understand that CLV is always a projection. As a result, the most accurate estimate of lifetime value is the one that is used in the optimal lifetime value computation.

Some CLV projections, referred to as historical CLV, are based on prior consumer behavior in order to anticipate future purchases.

Predictive analytics compute CLV based on the predictive model, similar to how Google Analytics calculates it.

Why do Businesses need to Measure CLV?

So, what is it about client lifetime value that makes it such an important indicator of corporate success? The quick answer is that it boosts long-term return on investment and helps businesses develop. Allow me to provide you with an example to provide a more thorough response. Consider the following scenario: you run an ice cream store and want to enhance sales. It goes without saying that you launch advertising campaigns or provide special discounts in order to encourage purchasing. However, which consumers are providing you with the best returns on your investment?

  1. That is the question to which CLV responds.
  2. Because of this, firms must pay close attention to this measure.
  3. The advantages of CLV are virtually limitless on the digital front.
  4. It would be prohibitively expensive for digital marketers to assess the efficiency of each channel in the absence of a metric such as CLV.
  5. These insights are built on a foundation of data.
  6. It’s almost like a Google Analytics-type tool.

Step by Step Guide for Google Analytics Lifetime Value Report

Google Analytics provides its users with the option of viewing a ‘Lifetime Value’ report.

This report contains useful information for organizations, but only if you know how to correctly interpret it. To assist you in navigating the Google Analytics Lifetime Value report, we’ve put up a step-by-step tutorial to help you get started. Let’s get this party started.

1. Opening the Lifetime Value Report

As soon as you log into your Google Analytics account, you’ll notice a menu on the left-hand side of the screen. Click on the ‘Audiences’ option in this menu, which is located under the ‘Reports’ tab (box1) (box2). There will be a drop-down menu shown. Select the ‘Lifetime Value’ option from the drop-down menu that appears (box3). It is expected that this action will send you to a layout similar to the one shown below.

2. Selecting MetricsTime Period

Once you’ve arrived to the Lifetime Value report, it’s time to choose the metrics you want to use. This report may be generated for any number of KPIs that are relevant to your business. These metrics are depicted in the graphic to the right. It is necessary to select the acquisition date range before you can proceed with this step, though. This option allows you to specify the time period for which you want CLV to be computed and presented in the Google Analytics dashboard. It is located on the left-hand side of the bar, just below the date range (green box).

To choose this measure, select it from the drop-down menu that appears above.

There are several decisions to be made at this point, as seen in the graphic below.

It will display as a table beneath the graph, and it will include the report itself.

  1. Choose a date range for the acquisition
  2. Identify the LTV metric
  3. Select a comparison metric
  4. And Choose a time representation based on the day, the week, or the month
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Onward with the example, we’ll utilize the metrics of “pageviews per user” and “sessions per user” to illustrate our point.

3. Breaking Down the Graph

So, what exactly is going on in this graph? So, do you recall the measurements we chose in the previous step? The graph depicts the lifetime value of site visitors based on the metrics used over the time period selected. The acquisition date of site users is represented by the red arrow on Day 0 of the countdown. According to the number of sessions and pageviews, the green arrow represents the cumulative average of the site users who have been recruited after six days. The users’ overall lifetime value (LTV) increases for around 12 days following the acquisition, after which it reaches a plateau.

The remainder of the tale is contained inside the table below.

4. Understanding the Table

When you look at the table, you’ll see that there are three columns. The’Acquisition Channel’is depicted in the left column (column 1), and it comprises of the following elements:

  • Direct channel, organic search, social media, other channels, and referrals are all options.

The number of site visitors for each acquisition channel and the specified time period are displayed in the center column (column 2) of the table. The LTV statistic for this situation is pageview per user, which is displayed in the right column (column 3) of the table.

The third column is the one to which you should pay close attention. This is due to the fact that this column displays the CLV of users for the specified metric (pageviews) based on the channel via which they were acquired. Examine this particular column in further detail.

5. Dissecting the Data

The difference between pageviews per user for direct channels (4.33) and organic search (4.81) is immediately apparent. They are much ahead of the competition. However, the number of pageviews per user from social media outlets is also significant (1.24). These are behind the other acquisition channels in terms of speed. It is possible to gain important knowledge from these statistics. Those who are referred through an organic search view nearly four times as many pages as users who are directed from social media platforms.

But there’s even another layer of knowledge buried behind all of this!

6. Exploring Further

Do you remember the first column, which displayed the acquisition channel information? If you click on the drop-down menu in the upper left of the table, you’ll be presented with a plethora of various alternatives. There will be other choices available, including the’Acquisition Source ‘, which will display the specific sources of your traffic. Investigating these sources will provide you with a better idea of where the traffic is originating from in your network. For example, if you look at our traffic statistics, you’ll understand what we’re talking about.

  1. However, by selecting the’Acquisition Source’ option in the first column, we can obtain a more in-depth look at the situation.
  2. But hold on a minute!
  3. As a result, customer lifetime value (CLV) is a more accurate indicator of profitability than simply traffic volume.
  4. This increases their chances of becoming a lead, and then eventually becoming a client.
  5. The takeaway is that you shouldn’t be concerned with the total number of visitors to your website.
  6. And the only way to find out is to look at the Google Analytics life cycle value report.


Important to remember is that CLV is not a guarantee of purchase or sale. However, it is the most effective method of understanding and predicting consumer trends, and not only at the surface level. There are far too many indicators available to marketers, each of which presents a distorted view of what is truly happening. CLV, on the other hand, peels back the layers of data and enables for the capture of actionable insights. So far, Google Analytics has proven to be the most effective tool for determining client lifetime value.

The key is to test different measures and see which ones work best. In this case, we utilized pageviews per user and sessions per user as metrics. However, you may experiment to identify the metrics that provide you with the most meaningful information.

Measure Long-Term Metrics Like Customer Lifetime Value (LTV) Using Google Analytics

If long-term measures such as customer lifetime value (LTV) and churn are maximized, they may be far more informative and result in greater results when compared to more fundamental metrics such as transactions or revenue, which can be difficult to optimize for. Despite this, these indicators are frequently overlooked, or at the very least are not sufficiently considered in the analysis and optimization procedures. An important reason for this is because tracking them using typical analytics and testing tools like as Google Analytics and Optimize is extremely tough to accomplish.

  • Some off-the-shelf solutions may be available for the program you’re already using, and you can choose to use them.
  • Although there are times when a decent solution is available, most of the time you will require greater control over the configuration.
  • Yes, measurements such as churn are important for SaaS and subscription businesses, but every firm that receives repeat business should have its long-term key performance indicators (KPIs) established.
  • In most cases, acquiring a new client is between five and twenty-five times more expensive than keeping an existing one.
  • Harvard Business Review is a publication that publishes research on business and management.

How to measure retention metrics like LTV and churn

The long-term retention metrics that are most significant to you will vary depending on the sort of organization with which you are working, but the most typical ones are customer lifetime value (LTV) and churn (return on investment). Other prominent retention key performance indicators (KPIs) are listed below. Consider which of the following might be applicable to your company’s needs. Metrics for Customer Retention that are often used

  1. Customer and Revenue Churn, Existing Customer Growth Rate, Repeat Purchase Ratio, Product Return Rate, Days Sales Outstanding, Net Promoter Score, Time Between Purchases, Loyal Customer Rate, and Customer Lifetime Value are all important metrics to track.

Source Almost all retention measures need the use of a properly implemented User ID. This implies that you’d have to track down the person throughout time, even if they’re using several devices or browsers at the same moment. Fortunately, most actions like as making a purchase or signing up for a subscription require some form of verification in order to be completed.

While Google Analytics may be used to measure retention metrics on its own, in most situations you’ll get far better (and more accurate) results if you combine it with another piece of technology. Let’s take a look at two of the most popular alternatives.

Sending retention data into Google Analytics

As part of this solution, Google Analytics will get the retention data and store it in a custom dimension or custom metric. The specific workflow will vary depending on the software (CRM, CMS, database, etc.) that your site employs, but the overall approach will look something like this.

  1. Create a custom dimension in Google Analytics (which should be restricted to a certain user)
  2. Pull or compute the numbers for the applicable retention metrics for logged-in/identified users from a database or other system on their behalf (CRM, CMS etc.) If your order data is stored in BigQuery, it will look something like this: Data layer access to retention metrics should be made available. Create a new Google Tag Manager campaign to transmit your retention data to Google Analytics, utilizing the custom dimension or metrics slots/indices that you created in step 1 and set in step 2.

Having the data in Google Analytics at your disposal now allows you to do whatever you want with it. Here are a few illustrations. Including lifetime value (LTV) in a Google Analytics custom report The lifetime value of a customer (LTV) in the Google Analytics user explorer report Take note of the difference between the LTV shown by Google Analytics by default ($439) and the number we observe in our custom dimension ($2,016). This is a measure of lifetime value. This is due to the fact that Google Analytics does not have the ability to monitor users as effectively as your backend system or the e-commerce platform you are utilizing.

The number of conceivable applications for this type of data is virtually limitless.

Of course, there are other options than making more/larger purchases.

We’re talking about several techniques to examine your data and the insights that may be gained from doing so.

Storing data in a data warehouse

For example, if you’re just starting started with retention measures and you’re still largely optimizing for generic metrics such as total transaction volume and total revenue, then having them in Google Analytics will still be beneficial to you. That is, as compared to the alternative of not having them at all. The utilization of a data warehouse is essential if you want to be serious about evaluating and optimizing for client retention and customer lifetime value. Take a look at the following simple instruction that will point you in the correct way.

  1. Send all Google Analytics data to a data warehouse for storage and analysis (i.e.BigQuery). Toolkits based on theReporting API (the vast majority of them) can get you started, but for actual unsampled hit-level data, you’ll need something like Parallel Tracking, which allows you to send, retrieve, and push data from other relevant sources into your data warehouse at any point in time. This should include your database, customer relationship management system, content management system, marketing tools, advertising platforms, customer support, live chat, and any other tool that stores information about your consumers and their interactions with your business. Using self-service tools such as Stitch will get you started, but we advocate more flexible managed solutions
  2. A solution for gaining access to information housed in your data warehouse. Ideally, you’d have something (which may be many tools) that can handle ad-hoc searches as well as dashboarding, automated reporting, and data model development. You may get started using free tools such as Google Data Studio. An alternative such as Looker or Tableau might be preferable. A managed service will put together the best selection of tools for you and setup the rest for you
  3. This is our advice.

If having retention metrics in Google Analytics enables you to create a plethora of valuable new reports and analyses, then the alternatives available to you with the above configuration are virtually unlimited, as is the case with the arrangement described above. An effective data warehouse will provide you with a competitive advantage in your industry. Not only will it provide you with the opportunity to have a very thorough understanding of the present state of your business and your consumers, but it will also enable you to completely optimize the user experience and the user journey.

It’s important to remember that getting a new client might cost anywhere from five to twenty-five times more than keeping an existing one!

One method to demonstrate the value of a data warehouse is to provide you with a set of sample questions to answer. Questions that would be extremely difficult to answer without the usage of a data warehouse are listed below.

  • When it comes to future purchases, which traffic channels are the most likely to be reimbursed at some point in time? It is possible that your marketing budget may need to be revised. How to determine which traffic sources have the best retention and lifetime value (LTV)
  • What is the relationship between the value of a subscription ($) and the churn rate? The long-term impact of your advertising or A/B testing is something you should consider. Is it true that rapid victories result in increased churn or poorer LTV? Is it possible to combine data from many sources? Possibly certain transactions that occur in Shopify are not being tracked by Google Analytics, or perhaps some of them are duplicates

Consider the following as an illustration of the last item on the list above: Google Analytics order totals against Shopify order totals Google Analytics is missing a significant number of transactions, as can be seen in the screenshot above, and this necessitates more research. Unquestionably something you should consider include in your Google Analytics dashboard. This was just a quick list of ideas to get you thinking about what is possible with a well designed data warehouse. There are many more possibilities.

Working with automatically recurring events

The fact that some retention measures might change without the user taking any action is vital to remember when analyzing retention analytics. It is your responsibility to ensure that those situations are tracked and taken into consideration. Here are a few illustrations.

  • Orders and payments that are scheduled to repeat
  • Subscription expirations
  • Payment method expirations
  • Orders that have been altered or cancelled (for example, owing to a missing item)

If your data warehouse was correctly designed, you should already have this information at your disposal. Please remember to incorporate it into your analyses and reports. If you don’t have access to a data warehouse and are attempting to tackle this problem only through Google Analytics, you will need to employ the Measurement Protocol. Custom programming is frequently necessary for some of the more prevalent subscription platforms, such as ReCharge for Shopify, which has this functionality built-in or is solvable with some third-party solutions.


It is likely that you already have this information if your data warehouse has been correctly designed. Ensure, however, that it is included in your analyses and reports. Using the Measurement Protocol is required in the event that you do not have access to a data warehouse and are attempting to resolve this issue only through Google Analytics. This is embedded into some of the more popular subscription platforms, such as ReCharge for Shopify, or is solvable with some third-party solutions, although special programming is frequently necessary.

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How To Calculate Customer Lifetime Value In Google Analytics

Would you like to discover how much each of your clients is worth to you? Would you like to know how much money you should spend on each of your clients and what the return on your investment is on these expenditures? The majority of your marketing actions are focused on determining the value of your advertising. Is this the primary purpose of most of your marketing operations? After all that has transpired, you’re probably thinking that this is another another article about Customer Lifetime Value.

You’d be half correct in your assessment.

However, we would argue that it’s just as probable that you’ve never done any calculations before!

Google anything related to LTV calculation and you will find a bewildering array of formulae, many of which are inapplicable un real life.

This has occurred as a result of the new capabilities that have been included in Google Analytics. Let’s start by defining customer lifetime value to ensure that we’re all on the same page in this discussion.

What is Customer Lifetime Value?

A fundamental statistic in marketing, Client Lifetime Value (CLV) or Lifetime Value (LTV), provides a projection of the net profit of a complete future relationship with a customer, and is used to determine customer lifetime value. LTV should be considered in practically every company choice, especially when it comes to advertising expenditure. The money that you set up for your advertising should be in accordance with the amount of revenue that you can anticipate each customer to provide you over the long run, if possible.

Lifetime value report in Google Analytics

Lifetime Value is a relatively new report in Google Analytics’ Audience area, and it can be found under the Audience > Audience Value heading. This report will provide you with a better knowledge of the value that a user has throughout the first 90 days after acquiring that user. The 90-day term can be extended by adding days, weeks, and months to it. In this report, you may compare the lifetime value based on two measures, which are depicted in the following illustration. There are a number of measures available, including:

  • Goal completions per user (LTV)
  • Pageviews per user (LTV)
  • Revenue per user (LTV)
  • Session duration per user (LTV)
  • Sessions per user (LTV)
  • Transaction per user (LTV)
  • Goal completions per user (LTV).

Furthermore, the lifetime value of users may be calculated based on four separate aspects, which are channel, source, medium, and campaigns. The lifetime value is computed by dividing the cumulative sum of the metric value by the total number of users who were acquired during the acquisition date range (i.e., the number of users gained during the acquisition date range). Revenue per User (LTV) = Revenue (LTV)/Users = Revenue (LTV)/Users For example, consider the following scenario, which is explained in detail: Consequently, the revenue per user (LTV) is computed as:361,805,841.13 / 18,085,477 = 20.01 / 361,805,841.13.


In this post, we illustrated a simple method for estimating your customers’ lifetime value that does not require the use of a sophisticated formula, spreadsheet, or machine learning techniques. Please keep in mind that Google Analytics can collect a variety of information on a customer’s lifetime value. In this section, we’ll go over some practical strategies for maximizing your client lifetime value.

1. Monitor your performance

One straightforward application of LTVCLV is to keep track of your performance. When calculating lifetime value, it is advised that you do so at least once a month and compare your results to evaluate how effective your marketing techniques have been in increasing the lifetime value of your consumers.

2. Develop your marketing strategy

If-then scenarios may be used to study the impact of various variables on the length of time your clients spend with you. You can determine which factors may be altered in order to influence distinct client behavior. Suppose you discover that lowering the price of your items not only encourages your consumers to purchase more frequently, but also lowers their turnover rate. By taking use of this new knowledge, you may be able to boost the lifetime value of your consumers by lowering the price of certain of your items.

3. Identify your most profitable marketing channels

You may examine LTV by acquisition channel, campaign, source, and media using the Google Analytics reports given by the service provider. LTV can tell you whether you are spending too little or too much on each of these channels.

The following is an excellent illustration of what I mean. As an example, if you discover that the lifetime value of an email campaign is $100, but the lifetime value of a Facebook channel is $200, you should spend twice as much money on Facebook as you would on email.

4. Develop a loyalty program

You may categorize your clients depending on their lifetime worth, and you can personalize your message for each group of consumers in your database. A loyalty program that sends different messages and rewards to different groups of clients may be developed in this context. The success of your loyalty programs can also be continuously monitored.

So what have we covered?

It is our hope that this paper will help to modify the public’s impression of LTV as an arcane and inaccessible method. Using Google Analytics’ new Customer Lifetime Value tool, we illustrated how calculating LTV is becoming increasingly crucial for organizations in the future, and how calculating LTV has gotten more straightforward as a result of the product’s introduction. We at Internetrix recognize that data analysis may be difficult, and if you need any more assistance, our data science team is more than happy to assist you.

How to Use Google Analytics Lifetime Value Reports to Highlight Valuable Marketing

PHOTO CREDIT TO: Carlos Luna You have a large number of reports to evaluate, but you are unsure which ones should be used for long-term value discovery. The Lifetime Value Report is an excellent report to experiment with. The report has been available in Google Analytics since 2017, despite being in beta. It is quite useful for focusing on the factors that motivate your clients to use your app or purchase on your website. When it comes to determining what is effective and what actions should be continued, this may help you organize your marketing budget goals.

The Value of Google’s Lifetime Value Reports

It is not necessary to go into detail on why Customer Lifetime Value is crucial. For the highest return on investment, you want your marketing to be focused on clients who will continue to spend even after your campaign has ended. A report called the Lifetime Value Report in Google Analytics might assist you with this. The Lifetime Value report contains Google’s version of Customer Lifetime Value study, which can be found here. Your acquisition sources by revenue, user, and revenue per user are compared in the report, which displays on the audience segment.

The Lifetime Value measures have been chosen in order to encompass the KPI-quality measurement spectrum.

  • Views per user (LTV)
  • Goal completions per user (LTV)
  • Pageviews per user (LTV)
  • Revenue per user (LTV)
  • Session duration per user (LTV)
  • Sessions per user (LTV)
  • Transactions per user (LTV)
  • Revenue per user (LTV).

Sessions Per User (LTV) is the default setting for the main graph, and it provides a means to analyze which campaigns and channels provided the most number of sessions per user — which is essential if you are looking for continuous usage of an app or website. Users with the greatest average revenue are acquired by which acquisition source, as measured by Revenue Per User (LTV). You can also change the graph’s x axis from daily to weekly and monthly portions by using the slider bar. Related Article: Google Tag Manager Enhances Marketers’ Toolkits with Custom Tag Templates Related Article:

Getting the Most Out of the Report

The Sessions Per User (LTV) graph provides a visual representation of which campaigns and channels generated the most number of sessions per user. This is particularly valuable if you are looking for continuous usage of an app or website. Users with the greatest average revenue are acquired by which acquisition source, as shown by the Revenue Per User (LTV).

Also available is the option to switch from daily to weekly or monthly segments on the x-axis of the graph. With Custom Tag Templates, Google Tag Manager enhances the marketing toolkit of marketers.

Align Your Marketing Efforts With What Works

Keeping track of which acquisition sources account for the lion’s share of your lifetime customer value will help you make better judgments about your digital marketing budget. The Lifetime Value Report serves as an excellent thought-starter for individuals who are responsible for spending decisions. Lifetime Value Reports are also a terrific method to match your marketing efforts to your most valuable client groups, provided that you do a little analysis of the findings against events and campaign activity.

Following a study of data from web analytics and social media dashboard systems, he makes recommendations and takes web development action to help clients enhance their marketing strategy and business profitability.

Tracking Customer Lifetime Value In Google Analytics

Customers’ lifetime value (CLV), also known as lifetime value (LTV) in marketing, is a projection of the value that a customer will have throughout the course of their relationship with your company or brand. This is frequently estimated or averaged, and it is occasionally done using complicated calculations. This subject has already been well explored by a number of good blog articles and numerous books, and I have no intention of repeating what has already been stated. My objective is to provide a new technique of measuring CLV in Google Analytics that is more accurate.

Two Methods: Custom Dimensions and Custom Metrics

Due to the fact that it is a number, you would imagine that a value such as CLV should be recorded as a custom measure. And you’re somewhat correct in your assessment. It is important to be aware of the limits and hazards associated with this strategy while employing it. Custom dimensions may also be used to measure customer lifetime value (CLV), and they should be used in conjunction with custom metrics when tracking CLV. Each solution has its own set of advantages and disadvantages.

Custom Dimensions

  • It is possible to utilize it in conjunction with Data Import. A user’s current lifetime value (CLV) can be reflected at any moment (and is not limited to data from the report’s data range)
  • It is simple to obtain a distribution of users through CLV.
  • Users having a CLV more than or less than a given threshold cannot be readily segmented
  • It is not possible to give the average CLV per channel, region, or other metric.

Ed Brocklebank of Metric Mogul has published an extraordinarily extensive and exhaustive poston tracking CLV with custom measurements that is available for download. It is strongly recommended that you go through it and set up those accounts. However, there are significant advantages to measuring CLV with unique metrics that should not be overlooked. That’s exactly what I aim to demonstrate to you.

Custom Metrics

  • It is possible to display the average CLV of users using this method. It is possible to display average CLV by segment (channel, area, and so on)
  • It is possible to separate users based on whether their CLV is more than or less than a specific threshold.
  • It is only possible to report CLV for the date range that has been specified. If you have a large amount of traffic and a long date range, it is possible that your data will be sampled.

Create the Custom Metric

First and foremost, you’ll need to build the custom metric in the Google Analytics Admin before you can begin submitting values to it. Click here for more information. To create a new custom metric for your CLV, navigate to Custom DefinitionsCustom Metrics under the Property column and provide the following information: Remember to write down the index for the custom metric, since this will be required in the following step.

In Google Analytics, the index is a number ranging from 1 to 20, which instructs the program where to store a certain value. If this is your first custom metric, it will be indexed at the beginning of the list.

One single line of code

In fact, regardless of whether you have Google Analytics hard-coded into your website or have it enabled using Google Tag Manager, the code necessary to track CLV with custom metrics is pretty straightforward. It is necessary to include an additional line on the receipt page, where you will enter your ecommerce tracking code, which will establish the order value as a custom measure. With hard-coded Google Analytics, you’ll normally be transmitting the transaction and item data along with the pageview hit (with enhanced ecommerce), thus you’ll only need to alter your pageview metric to include the custom measure when you use enhanced ecommerce.

It’s possible that you’re already doing this, and that the transaction details are stored in the dataLayer.

You’ll need to track a unique ID for each user as a user-scoped custom dimension in order to do this.

You may be able to utilize a value from your database or customer relationship management system (CRM) for the unique ID.

Consequently, any items acquired prior to (or after) that time period will not be included.

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