As an Amazon seller, increasing your customer lifetime value is one of the most important steps you can take to increase profits on the platform. We’ve outlined a few easy ways to help make this happen:  

  • Start with customer retention: find out how long it takes for customers–including those who have been loyal to you over time–to buy from you again in the next year, and the percentage to most likely buy again. 
  • Next calculate which groups will bring in more profit: those that make repeat purchases or new potential buyers? 
  • Determine Your Customer Acquisition Cost (CAC) Ratio: how much do you spend acquiring each new client? 
  • Utilize an Amazon profit tracker: track your profitability and see your cost for every sale.

Understanding Customer Lifetime Value

One of the more important key metrics in business is customer lifetime value, or CLV, also known as lifetime value or LTV. This measure tells you how much a single client will spend