How to increase customer lifetime value on Shopify

To increase customer lifetime value (LTV) on Shopify, get more customers to a second order and make each later order a little bigger. In practice that means: a reason to come back right after the first order, a loyalty program that rewards repeat buying, a smooth wait for delivery, returns that keep the money in your store, and offers that raise every order’s value. Below is how to measure LTV, then each step in the order a customer meets it.

What is customer lifetime value?

Customer lifetime value is the total a customer spends with your store over all their orders. A simple way to think about it:

LTV = average order value × number of orders per customer

So there are two levers: bigger orders (average order value, AOV) and more orders per customer (repeat purchases). Most of the steps below work on one lever; a few work on both.

How do I measure it on Shopify?

Shopify’s Analytics has reports for returning customers and customer cohorts, which show how many customers come back and when. Look at:

Returning customer rate: the share of customers with more than one order.
Time to second order: how long customers usually take to come back. Time your reminders and offers around it.
Average order value: the other half of LTV.

Write down where you start, so you can tell later whether a change helped.

1. Give a reason to come back right after the first order

The thank you page is seen by every customer, at the moment they are happiest with you. Put a discount code for the next order there, with a copy button, plus follow buttons and products that go with what they bought. See thank you page ideas.

2. Make the wait for delivery part of the experience

Between the order and the delivery, customers check where their parcel is. A tracking page on your own store, instead of a carrier’s site, answers “where is my order” and can show recommendations and a next order code while they wait. See an order tracking page that sells and the Shopify order tracking page.

3. Reward repeat buying with a loyalty program

Points for every order turn repeat buying into a visible balance, and rewards give a reason to choose your store again. Add a few extras such as points for creating an account and on birthdays, and a referral link so loyal customers bring friends. See how to set up a loyalty program on Shopify and how to set up a referral program.

4. Keep the sale when something goes back

A return doesn’t have to end the relationship. Offering an exchange for another size, or store credit (with a small bonus) before a refund keeps the money in your store and gives the customer a reason to order again. See store credit vs refunds.

5. Make every order a little bigger

LTV multiplies average order value by the number of orders, so raising AOV raises LTV on every future order too: quantity breaks, bundles, cross sells in the cart and a free shipping goal a little above your typical order. See how to increase average order value on Shopify.

How does CRO Toolbox help with LTV?

CRO Toolbox has each of these steps in one app:

Thank you page with a next order code, follow buttons and product suggestions (Free plan).
Track order page on your store, which can show recommendations, a next order code and a buy again button (Growth plan).
Loyalty program with points, rewards, a Points shop and referrals (Growth plan, $19.99 a month; Pro adds VIP tiers, campaigns and cashback).
Returns with exchanges and store credit with a bonus (Pro plan for store credit and exchanges).
Upsells, bundles and cart offers for a higher AOV (every offer type on the Free plan, within its offer slots).

See the Shopify loyalty app page and pricing.

Quick checklist

Returning customer rate and time to second order written down
A next order reason on the thank you page
A tracking page on your own store
A loyalty program with a reachable first reward
Exchanges and store credit offered before refunds
Offers that raise every order’s value