Calculating Shopify customer lifetime value starts with the first order, not with revenue. Take what a new customer's first order earns after costs, add the profit from the repeat orders those customers place, then subtract what it costs to win them. Bloom puts these steps in one view, so you can see what a customer is worth as profit, not just as sales.
Key takeaways
The first order is the starting point for understanding customer value.
First Order Value (NC AOV) is reduced by COGS, shipping, and fees to give First Order Profit.
60-Day Repeat Rate and Profit from Repeat Orders feed Bloom's 60-Day Customer Value (Profit LTV).
Subtracting New Customer CAC gives Net Profit per Customer, and Payback Period shows how long it takes to recover that cost.
Bloom's Unit Economics Flow shows all of it in one place on the Marketing Insights page.
What are the steps to calculate customer lifetime value on Shopify?
Bloom's Unit Economics Flow follows nine figures, in this order:
First Order Value
Order Costs
First Order Profit
Repeat Rate
Repeat Order Profit
Profit LTV
CAC
Net Profit per Customer
Payback Period
The sections below explain each step.
What are First Order Value and First Order Profit?
The first purchase is where customer value begins. First Order Value (NC AOV) is the average first-order revenue from newly acquired customers.
Revenue is not profit. COGS, shipping, and fees all reduce that first-order revenue, and what remains is First Order Profit. Bloom brings these figures together so you can see the economics of the initial purchase in one place.
Why does the first order not show a customer's full value?
Many customers buy more than once, so the first order does not tell the complete story. To see the rest, you need two more figures.
The 60-Day Repeat Rate is an indicator of how many new customers come back. Profit from Repeat Orders captures the additional profit generated by those customers.
Bloom uses these figures to estimate 60-Day Customer Value (Profit LTV). This is the Shopify customer lifetime value figure built on profit, not revenue.
How does customer acquisition cost change customer lifetime value?
Customer value should always be considered alongside New Customer CAC. A customer's profit means little until you know what it cost to win them.
Here is an illustrative example. A customer generates £10 in profit, but £15 was spent acquiring them. That customer is not valuable, because the acquisition cost is higher than the profit.
Bloom accounts for acquisition cost to arrive at Net Profit per Customer. This separates three things that are easy to blur together:
Customer revenue: what the customer spent.
Customer value: the profit the customer generates.
Customer profitability: what remains after the cost of acquiring the customer.
What is the customer payback period?
Merchants need to know how long it takes to recover the cost of acquiring a customer. Bloom's Payback Period answers this by connecting CAC with the profit that customers generate.
It also shows how your acquisition economics behave. You can see whether the cost is recovered quickly or whether it relies heavily on future purchases.
Where can I see customer lifetime value in Bloom?
The Unit Economics Flow on Bloom's Marketing Insights page gives you a single view of the customer's P&L. It walks through the full sequence: First Order Value, Order Costs, First Order Profit, Repeat Rate, Repeat Order Profit, Profit LTV, CAC, Net Profit per Customer, and Payback Period.
Bloom shows actual and estimated cohort data. This makes it easier to separate realized customer performance from projected repeat value.
The Insights & Alerts section sits alongside it. It highlights important movements in customer economics and points out where changes in repeat rate, profit, or acquisition cost are affecting customer value.
How does customer lifetime value shape marketing decisions?
Customer-level economics help you evaluate how much you can afford to spend to acquire new customers. They also show whether growth is coming from profitable customers or simply from more orders.
Bloom helps you understand customer profitability, evaluate acquisition costs, and make marketing decisions based on long-term customer value. If you want to calculate customer lifetime value on Shopify in a way that includes costs, start with the Unit Economics Flow in Bloom.
Frequently asked questions
What is Shopify customer lifetime value in Bloom?
Bloom measures it as 60-Day Customer Value (Profit LTV). It starts with First Order Profit, adds Profit from Repeat Orders, and is based on profit rather than revenue.
How do I calculate the lifetime value of a customer on Shopify?
Start with First Order Value (NC AOV), subtract COGS, shipping, and fees to get First Order Profit, then add the Profit from Repeat Orders using the 60-Day Repeat Rate. Subtract New Customer CAC to see Net Profit per Customer. Bloom brings these figures together in one view.
Why does customer lifetime value need to include CAC?
A customer who generates £10 in profit is not valuable if £15 was spent acquiring them. Bloom subtracts New Customer CAC to show Net Profit per Customer, so you can separate customer revenue, customer value, and customer profitability.
What does the 60-Day Repeat Rate show?
It shows how many new customers come back to buy again. Bloom uses it, together with Profit from Repeat Orders, to estimate 60-Day Customer Value (Profit LTV).
What is the Payback Period?
The Payback Period shows how long it takes to recover the cost of acquiring a customer. It connects CAC with the profit that customers generate, so you can see whether acquisition costs are recovered quickly or depend heavily on future purchases.
Where do I find customer lifetime value in Bloom?
Open the Marketing Insights page and find the Unit Economics Flow. It shows the customer's P&L from First Order Value through to Payback Period, using actual and estimated cohort data.
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