Average revenue generated per customer within 120 days (4 months) of their first purchase.
LTV 120 = Total Revenue (120d Window) ÷ Customer Count
| Metric | Definition |
|---|
| Total Revenue | Sum of order revenue within 120 days of first purchase |
| Customer Count | Number of customers in the cohort |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify |
| Aggregation | Average |
Example
Your January cohort of 850 new customers generated $80,750 within their first 120 days:
| Cohort | Customers | Revenue (120d) | LTV 120 |
|---|
| January | 850 | $80,750 | $95.00 |
| February | 920 | $92,000 | $100.00 |
| March | 780 | $70,200 | $90.00 |
How It Works
LTV 120 calculates the average total revenue per customer within 120 days of their first purchase. Each customer’s orders placed within this 120-day window are summed, then averaged across all customers in the cohort. The 4-month window captures mid-term repurchase behavior and provides a balance between short-term payback (LTV 90) and longer evaluation periods (LTV 180/365).
When to Use
| Scenario | Action |
|---|
| Quarterly acquisition planning | Compare LTV 120 against CAC to evaluate 4-month payback |
| Retention program evaluation | Track if loyalty programs improve LTV 120 vs baseline |
| Subscription product analysis | Assess value from initial purchase plus first renewal cycle |
| Seasonal cohort comparison | Compare cohorts acquired in different quarters |
| Metric | Relationship |
|---|
| LTV 90 | Shorter window (90 days) for faster payback analysis |
| LTV 180 | Extended window (180 days) for longer-term value |
| LTV 365 | Full-year customer value benchmark |
| AOV | Per-order value vs per-customer value |
| Total Revenue | Revenue without time-window constraints |
