To evaluate the value of the metric, go to the Audience section and select Total Value. The report will show you revenue per user for the entire period. To calculate LTV, you will need to subtract the cost of attracting a buyer from this amount.
Important information about the Total Value report:
- Google Analytics takes into account customer data for the last 90 days;
- to collect information about visitors, the c level executive list system uses cookies, so if the client does not accept them, you will not receive information about him;
- The analytics system cannot calculate the client’s expenses because it requires additional information.
To obtain information via Yandex Metrica, click on the “Visitors” tab (it is located in the main menu on the left). From the report, you can find out information about how many and for what amount in total purchases were made. This will be useful for determining LTV.
How to understand whether LTV is normal or not?
To determine whether the indicator is normal, you need to compare it with CAC. Their ratio (LTV: CAC) will show whether the business is operating efficiently:
- < 1 : 1 – the company attracts clients at a loss and wastes money on advertising;
- 1:1 – advertising costs are set lead generation goals equal to the profit it brings, that is, there is no real income from advertisements;
- 3:1–4:1 is the ideal ratio, which indicates a solid business model;
- 5:1 – the company may be growing more actively, but invests too little in marketing.
The LTV:CAC ratio is not constant, as the situation can change, for example, when a new competitor enters the market and takes away some of the customers.
CAR (Cart Abandonment Rate)
This metric speaks for itself. It shows how many people (in %) filled the “Cart” on the site, but did not decide to make an order. CAR is useful for online stores to know.
The following formula is used for calculation:
CAR = (Number of users who abandoned the cart / Number of users who added an item to the cart) * 100%.
Here are some reasons why users it email list abandon their shopping carts:
- we didn’t expect the cost of the goods to be so high;
- went to an online store to search for products, not to buy them;
- found where to buy cheaper;
- postponed placing the order until better times;
- couldn’t figure out the structure of the site.
- How to get information about CAR
To get the data from Google Analytics, go to the Reports section, then Conversions – E-commerce – Buyer Behavior. The bottom of the table will show the number of seconds when visitors added products to the Cart and when they made orders. The ratio of these two indicators is CAR.
To view information about products in the “Cart” of the online platform, you need to connect e-commerce reports in Yandex Metrica. To do this, you should contact the developer of the platform. After connecting, you will be able to view a report called “Products in Cart”.
If CAR increases, then perhaps competitors sell similar products at a lower price and buyers go to them. With a loyal pricing policy, it is worth thinking about the user interface: the user should quickly get to the necessary page and buy the product in a few clicks.