June 27, 2018

AOV and LTV

In my lifetime value work, there are two consistent themes related to lifetime value.

  1. Larger first orders = Better lifetime value.
  2. More items in a first order = Larger first orders = Better lifetime value.
Interestingly, any time a human being touches a first order you'll see larger AOVs ... which lead to bigger/better LTV. So where it is reasonable and cost-effective, get a human involved in a first purchase, even if it means that a human is following-up to see if a first order met customer expectations.

But if a human can't be part of the first-order process, use #technology to cross-sell the customer so that the customer adds an item to a first order, ok?

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