What it means for a research store
LTV can be measured historically (what customers acquired in a given month have actually spent since) or predicted (what a customer is expected to spend). Historical cohort LTV is more reliable for small stores because it uses real orders rather than a model.
Measure on margin, not revenue, when you use LTV to set acquisition budgets: subtract product cost, discounts, refunds, shipping subsidies, processing fees and affiliate commission. A customer who buys often with large discounts can be worth less than one who buys twice at full price.
Compare LTV with customer acquisition cost for the same cohort and time horizon. Repeat purchase rate is the main driver in most research-supply stores, which is why post-purchase email and reorder convenience often matter more than first-order discounts.
How Torva OS handles it
Torva OS analytics include customer retention by first-order cohort, and orders can carry product costs so profit, not only revenue, can be reported.
Related guides
Updated September 25, 2026. General information for merchants, not legal, tax or financial advice. This glossary does not describe the use of any compound in people.
