In context
A simple revenue CLV estimate is average order value × purchases per customer per year × expected relationship in years. Match the time units: monthly purchase frequency needs a lifespan in months. For gross-profit CLV, multiply revenue CLV by the gross-margin fraction. State which definition you use; revenue and gross profit are different amounts.
Illustrative example: $50 per order × 4 orders per year × 3 years gives $600 revenue CLV. At a 40% gross margin that is $240 gross-profit CLV, before acquisition and other operating costs. Compare CAC with a consistently defined contribution or profit measure and consider how long it takes to recover that cost. A rising revenue CLV alone does not establish profitable growth, and there is no universal LTV:CAC ratio or payback period that fits every store.
How Zubby uses this
Zubby tracks realized value for every shopper as orders sync from your store: order count, total spend, and rolling 30- and 90-day spend. Those numbers drive VIP tiers and a daily churn-risk score that can enroll at-risk shoppers in a winback journey. It is measured history, not a predictive lifetime-value model.
The cohort retention view groups shoppers by the month of their first order and shows how many came back to buy again in each following month.