This article gives an overview of Customer Lifetime Value (LTV) in Kapoq, organized in the following sections:

Lastly, this article concludes with a glossary of LTV terminology used within Kapoq.

Kapoq looks at 2 years of order history (from date of integration) when computing LTV metrics. Customers are identified using buyer email and split into cohorts based on their month of first purchase. LTV is then computed as the average lifetime revenue for each cohort.

The data source is the Amazon Fulfilled Shipments Report. LTV data is available in Kapoq for FBA orders only (not FBM).

Note that this is different from Amazon's NTB reporting which uses a one-year lookback window and is for Sponsored Brands (SB) only.

Setting up your LTV settings in Kapoq is very easy as it simply involves setting up the one setting described below.

Navigate to the "Customer Experience" module and then click on settings to navigate to the Customer LTV setting in Kapoq:

By default, we set the "LTV Delay Months" setting to 6 months, but you can increase or decrease this value as you see fit. This setting starts new/existing LTV classification for the LTV summary report this many months after your first order.

For example, if you set "LTV Delay Months" to 6 months, then the graphs in the LTV summary report will only summarize LTV metrics starting 6 months after your first order. We find it can be helpful to exclude the first few months for many brands, because it takes a few months for behavior to smooth out. During the first month, for example, it would be impossible to have a repeat customer from a prior month, and so repeat behavior is generally most reasonable after a few months have passed. The first month or two also often have limited amounts of customer orders and can lead to outlier results that are noisy, which is another reason we find having this setting at around 6 months often gives more reasonable LTV results.

Of course, you also have the option to set this setting to 0 which will use your entire order history when computing LTV metrics.

There are numerous places within Kapoq where lifetime value (LTV) metrics are displayed.

Analytics Module

Navigate to the Analytics Module > Reports tab, and the following three reports are available for download:

We recommend starting with the Summary Report which contains the key LTV graphs and insights.

The raw customer data and raw order data reports are also available for download. These are CSV files showing the raw data that feeds into Kapoq's LTV calculations.

Customer Experience Module

The Customer Experience module contains numerous LTV metrics and graphics. The main place to see these is in the Customer Experience LTV submodule, which can be reached by clicking "Customer LTV" on the top ribbon within the Customer Experience module.

Keep in mind that for all graphs in the submodule, you can hover over the informational popovers for background information on each graph.

Listings Module

You can also look at the "Customer Acquisition & Retention" graph at the SKU / ASIN / Parent ASIN levels. Simply navigate to the listings module and select the relevant item you would like to analyze. Then go to the customer experience tab to see the graph below:

We hope you found this overview of LTV helpful! We are constantly expanding our LTV features within Kapoq, and expect our LTV features to grow over time. Don't hesitate to reach out to the Kapoq team if you have any thoughts or questions.

Cohort - customers are assigned to a cohort based on their month of first purchase. Note that for the "Revenue By Year & Cohort" graph, cohorts are formed using an annual time step.

Customer acquisition cost (CAC) - estimated by prorating ad spend to new customers.

Existing customers - customers having a purchase in the current month as well as a purchase in a prior month.

Lifetime value (LTV) - average lifetime total ordered product sales for each cohort of customers with the same month of first purchase. Note that Kapoq's LTV calculation is based on revenue and does not incorporate margin.

New to brand customers - customers having a purchase from the brand in the current month without any purchase from the brand in a prior month.

New with multiple purchases customers - customers who have multiple purchases in their first month. For example, if a customer never purchased from a brand before February 2022 and had 3 orders with the brand in February 2022, then the customer is classified as new with multiple purchases.

One-Time / Repeat customers - customers are assigned to a cohort based on their month of first purchase. They are classified as repeat customers if they have multiple purchases and are classified as one-time customers if they only have one lifetime purchase with the relevant brand/seller account.

Unknown customers - customers for whom their status could not be determined (e.g. buyer email unavailable from Amazon). If Amazon returns an order line with no buyer email address, we will ping the API for up to 90 days for the missing information. Any buyer emails that become available are added to their respective order line(s) and those customers will be moved out of unknown status.