E-commerce Glossary

Customer Lifespan

Average duration during which a customer remains active and makes purchases on your store.

Customer lifespan is the average period between a customer's first and last order. It is an essential component of LTV calculation.

Calculation: Lifespan = 1 / Churn Rate.

If your annual churn rate is 50%, the average lifespan is 2 years. If churn is 25%, the lifespan is 4 years.

Extending customer lifespan is often more profitable than acquiring new customers. Key levers include: loyalty programs, regular communication, excellent customer service, and personalized offers based on purchase history.

Fullmetrix measures lifespan by acquisition cohort to identify the periods and channels that generate the most loyal customers.

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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