Do you want to find the customer lifetime value of your WooCommerce visitors?
Customer lifetime value is an important metric, and it helps in identifying your most loyal customers. It also tells you how much money they will spend on your products or services.
And the easiest way of viewing the lifetime value of your customers is through Google Analytics.
In this article, we’ll show you how to find your WooCommerce customer lifetime value. Let’s start…
What is Customer Lifetime Value?
The lifetime value (LTV) of a customer is the total revenue you expect from a single customer. In other words, it’s the money generated from customers from the day you acquired them.
Measuring customer lifetime value can be a useful metric, as it helps companies improve their customer journey. You can tell how much money a customer will spend over the course of their relationship with your brand.
This helps in finding your most valuable and loyal customers. And you get to allocate resources to the right group of customers and boost your return on investment (ROI).
Plus, it provides data to make decisions about whether you want to spend more on marketing campaigns to acquire new customers or focus on retaining existing customers.
Now, are you wondering how to calculate the lifetime value of your WooCommerce customers?
How Do You Calculate Customer Lifetime Value?
You will find different calculations for lifetime value, depending on your business model.
But Google Analytics calculates the customer lifetime value (CLV) using the cumulative sum of the metric value (revenue or time on site) and divides that by the total number of users acquired during the acquisition date range.
What this means is that let’s say you get 100 users on day 1 on your WooCommerce store and generate $114 revenue. The customer lifetime value for that particular day will $1.14. Google Analytics will show LTV for a maximum of 90 days.
That said, let’s see how to find WooCommerce lifetime value in Google Analytics.
How to Set Up WooCommerce Customer Lifetime Value
The easiest way of tracking your WooCommerce customer lifetime value is by enabling Enhanced Ecommerce in Google Analytics. It will track your conversions, average order value, and revenue in analytics and show your most profitable customers.
And with ExactMetrics, it’s easier than ever to set up eCommerce tracking. You don’t have to edit any code or hire a developer to track your WooCommerce store’s performance.
To start, follow these steps and you’ll be able to find the lifetime value of your customers in no time.
Step 1 – Install and Activate ExactMetrics
ExactMetrics is the best premium WordPress analytics plugin, and it makes it very easy to use Google Analytics. It will add the tracking code to your website without the need to touch a single line of code.
Plus, the plugin comes with powerful features and dashboard reports that help uncover insights about your audience. Using the reports, you can make data-driven decisions and don’t have to rely on your best guess to see what’s working.
First, download the ExactMetrics files from your account area and upload them to your WordPress website. Next, activate the plugin.
Step 2 – Connect Google Analytics to ExactMetrics
In the next step, you will need to add Google Analytics to your WordPress site. There is no need to worry about manually adding the tracking code, as you can follow the steps in the ExactMetrics setup wizard.
For more details, you can refer to our tutorial on how to properly set up Google Analytics in WordPress.
Step 3 – Install ExactMetrics eCommerce Addon
After setting up Google Analytics on WordPress, you will now have to install the ExactMetrics eCommerce addon.
It will automatically track your WooCommerce store and start tracking its conversions, revenue, and customer lifetime value in Google Analytics. To install the addon, go to ExactMetrics » Addons » eCommerce and click the Install button.
Step 4 – Enable Enhanced eCommerce in Google Analytics
Next, you will also need to enable Enhanced Ecommerce in Google Analytics.
To do that, log in to your analytics account and go to the admin settings.
Now click on Ecommerce Settings under the View column.
After that, toggle to switch ON the Enable Ecommerce and Enable Enhanced Ecommerce Reporting options.
Once that’s done, click the Save button.
Step 5 – Enable Use Enhanced eCommerce Option in ExactMetrics
Now go back to your WordPress website’s admin area and head over to ExactMetrics » Settings » eCommerce.
Next, under the eCommerce Tracking settings, make sure to enable the Use Enhanced eCommerce option if it’s not already enabled.
ExactMetrics should automatically detect your WooCommerce store and start tracking it in Google Analytics.
You can also view the report inside your WordPress dashboard. Just go to ExactMetrics Reports eCommerce and see your store’s conversion rate, number of transactions, revenue, average order value, top products, and much more.
How to View Customer Lifetime Value Report in Google Analytics
Now that WooCommerce tracking is up and running, it’s time to see your customer lifetime report in Google Analytics.
First, log in to your Google Analytics account and then go to Audience » Lifetime Value. In the report, you’ll see a graph of your lifetime value for the last 90 days.
Under the graph, you can see the lifetime value of your customers based on the acquisition channel. For instance, you can view the LTV for users that come from organic search and compare that with other channels like a referral or social.
You can also select different methods of acquisition to viewing the customer lifetime value. Just click on the Acquisition Channel drop-down menu and select any acquisition source you want.
For example, you can select a campaign and see the customer lifetime value of your different campaigns. This will help you find out which marketing campaigns to focus on in the future and which campaigns help bring the most profitable customers.
And that’s it!
We hope you liked our article on how to find your WooCommerce customer lifetime value. You may also want to take a look at our guide on WooCommerce conversion tracking and Google Analytics metrics every business should track.
Don’t forget to follow us on Twitter and Facebook to get to know the latest Google Analytics tutorials.