Solo business operations
How a Solo Business Can Calculate LTV from Order History
A practical way to estimate and use customer lifetime value from order frequency, average payment, and retention without complex analytics.
Fix the period and customer definition first
Use a consistent period such as the last 12 months and exclude refunds, tests, and internal accounts. Group orders by email or customer ID and define how duplicate accounts are merged.
Start with average order value × frequency × retention
A baseline LTV is average order value multiplied by purchase frequency and average retention. To measure contribution rather than revenue, apply gross margin to the order value first.
Turn segment differences into decisions
Compare LTV by acquisition source, first product, industry, or contract type. Improve repeat experience for high-value segments and reduce acquisition or support cost for low-value segments.
Start with OfficialMail
Start operating with one official primary mailbox.
Use one primary mailbox as your company's official address and review every domain-connection value directly in the mailbox.