The Life Time Value of A Customer: There’s Your Ticket!

Good morning,

As an E-commerce consultant I am often asked what is the best metric an online retailer can use to determine the true success of his/her marketing efforts? In my experience the straight forward conversion result of a marketing campaign is the most satisfying indicator possible, however the best metric to determine your online success as an online retailer aside from the straight forward conversion is the (LTVC) The Life Time Value of a Customer.

Every successful business owner I’ve consulted has always measured the LTVC in their business model. LTVC is without question one of the key standards that every business should consider using when determining the long-term success of their business, especially when it relates to online marketing. The LTVC should predicate any and all decisions in a business and should be at the forefront of any and all online marketing campaigns.

Consider the following:  

Consider the value you receive as a retailer when you collect an email, when you collect data on a purchase, when you quantify certain aspects of the buyers behavior and best of all when get to re-market to that customer, less expensively, so you can service them better and decrease your overall (CPA) Cost Per Acquisition.

Dont Ignore It

Ignoring the LTVC and looking at the short-term success of an online marketing campaign is a huge mistake. I usually recommend all my start-ups and all of my clients to build their marketing models around this one key performance factor because it always proves to be one of the highest yielding result metrics that I know of.

Dont get stuck thinking short-term, think long-term and build a solid base around the LTVC, you’ll be glad you did.

To your success!

Emilio Yepez
Phone: 305 389 8955
AIM: affiliateagle


Emilio Yepez is an e-commerce consultant located in Miami, Florida with over 16 years of operational and internet marketing experience. Emilio Yepez has worked with top Internet Retailer 500 companies and has generated Millions of Dollars in sales in both affiliate marketing programs while at ARC and ARC Media and ecommerce business development projects, like Recently, Emilio Yepez developed and managed the ecommerce site, the largest Hispanic Owned Pharmacy Chain in the US.