It is important to understand where your most valuable customers have arrived from. Calculating customer lifetime value (CLV or LTV) is essential for ecommerce businesses, but it can be difficult without the right analytics setup.
For Shopify merchants using Littledata this is easy because of the work invested to link Google Analytics to Shopify data in a meaningful way, especially for subscription businesses.
Which custom dimensions does Littledata use?
In addition to the complete enhanced ecommerce data our Shopify connection sends to Google Analytics, our app creates and tracks four custom dimensions to help you calculate CLV.
- Lifetime value of the user who made the transaction – name: Littledata – Lifetime Revenue
- Number of orders made by that user so far – name: Littledata – Purchase Count
- Last order date (in each case the transaction date) – name: Littledata – Last Transaction Date
- Shopify customer ID – name: Littledata – Shopify Customer ID
These custom dimensions are tremendously powerful for diving into your ecommerce data or segmenting customers for export, whether you’re selling products by subscription or simply want a clearer view of repeat purchases over time, tied to the original marketing touch point.
Sample use case
Let’s say that you want to find the lifetime value by channel. Based on the combination of standard info in Google Analytics (eg channel grouping) and the following custom dimensions
- Littledata – Lifetime Revenue
- Littledata – Shopify Customer ID
You can calculate what is the lifetime revenue by channel (the full picture).
Create audiences based on the last purchase and number of orders of the customer:
Using the segment feature of Google Analytics you can create and segment (and export as audience) that can look after all users with the custom dimension:
- Littledata – Last Transaction Date
- Littledata – Purchase Count
You then can use that segment to retarget them on the Google Ads network.
This is an example for users that have purchased only once in the last month:
Note: Because this data is sent as custom dimension, there is a need for Regex knowledge:
Even though you can do a basic and inexact calculation using only the data found in Google Analytics, using Littledata’s ReCharge connection or Bold connection lets you see a complete picture of your marketing efforts over the entire customer cycle, because the recurring transactions are included.