Calculate your Customer Lifetime Value.

Customer Lifetime Value (LTV) is the total gross profit a single customer generates across the full duration of the relationship. It's the ceiling on what you can afford to spend acquiring them.

The formula:

LTV = AOV × Purchase Frequency × Customer Lifespan × Gross Margin

If your LTV is €288 and your customer acquisition cost (CAC) is €90, your LTV:CAC ratio is 3.2:1. A healthy ratio. If it drops to 1.5:1, you're under-water on every paid acquisition channel and have to fix retention or pricing before scaling spend.

• Below 1:1. Losing money on every customer. Stop spending on growth; fix the product or pricing.
• 1:1 to 3:1. The business is sub-scale. Either CAC is too high or the customer doesn't buy enough to justify acquisition.
• 3:1 to 5:1. Healthy zone. Most well-run D2C and SaaS businesses sit here.
• Above 5:1. You're under-investing in growth. Pour more into acquisition; you have room.

The fastest way to lift LTV without changing pricing is to add a recovered-cart channel. Customers who abandon a cart have already shown intent. Winning even a quarter of them back per month materially shifts the math.

Our merchants average 18–32% recoveryon abandoned carts using AI voice calls. On a Shopify store with €40K/mo in lost carts, that's €7–13K/mo of fresh revenue going to existing customers who become a higher-LTV cohort (because retention compounds).