E-commerce Glossary

Customer Equity

Total discounted value of your entire customer base over their estimated lifetime.

Customer equity represents the sum of LTVs of all your active and future customers, discounted to present value. It is a strategic measure of the real value of your customer portfolio.

Calculation: Customer Equity = Sum of current LTVs + forecasted LTVs of future acquisitions, with discount rate. It combines acquisition, retention, and monetization into a single indicator.

This metric is essential for long-term investment decisions: how much can you spend on acquisition, retention, product improvement? The higher the customer equity, the more your company is valued.

Fullmetrix models your customer equity from your historical cohorts, churn, and LTV by segment. You visualize the impact of each marketing action on the overall value of your customer base.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition
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