LTV CM1: Lifetime Gross Margin Value

LTV CM1 measures the total gross margin (revenue minus COGS) a customer generates over their lifetime—their true value before fulfillment and other costs.

Formula

LTV CM1 = Total CM1 ÷ Customers

Formula Components

Metric	Definition
Total CM1	Gross margin from all orders
Customers	Count of unique customers

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Average

Example

Your Shopify store has $600,000 total CM1 from 10,000 customers.

Component	Value	Calculation
Total CM1	$600,000	Gross margin
Customers	10,000	Unique buyers
LTV CM1	$60	$600,000 ÷ 10,000

How It Works

LTV CM1 shows the gross margin contribution per customer before fulfillment and marketing costs. This is useful for understanding baseline customer value and setting acquisition cost targets.

When to Use

Scenario	Action
CAC targeting	Set max CPA based on LTV CM1
Product mix analysis	Higher-margin products increase LTV CM1
Customer segmentation	Compare LTV CM1 across segments
Pricing decisions	Evaluate margin impact on LTV

Metric	Relationship
LTV	Lifetime revenue value
LTV CM2	After fulfillment costs
CM1	Total gross margin
LTV:CAC	Acquisition efficiency

See all LTV metrics →