> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Customer LTV: First-Order Customer Lifetime Value

> Track new customer LTV for your Shopify store. Measure the average first-order revenue from newly acquired customers.

<Tip>
  New Customer LTV measures the average revenue from first-time customer orders—the starting point for lifetime value before repeat purchases.
</Tip>

## Formula

<Info>
  **New Customer LTV** = **New Customer Revenue** ÷ **New Customers**
</Info>

### Formula Components

| Metric                                                                                   | Definition                           |
| ---------------------------------------------------------------------------------------- | ------------------------------------ |
| [**New Customer Revenue**](/reference/metrics/orders/revenue/new-customer-total-revenue) | Revenue from first-time buyer orders |
| [**New Customers**](/reference/metrics/orders/customers/new-customers)                   | Count of first-time buyers           |

| Metadata        |                                     |
| --------------- | ----------------------------------- |
| **Type**        | Currency                            |
| **Data Source** | [Shopify](/sources/catalog/shopify) |
| **Aggregation** | Average                             |

***

## Example

Your Shopify store generates **\$50,000** from **500** new customers.

| Component            | Value     | Calculation       |
| -------------------- | --------- | ----------------- |
| New Customer Revenue | \$50,000  | First-order sales |
| New Customers        | 500       | First-time buyers |
| **New Customer LTV** | **\$100** | \$50,000 ÷ 500    |

***

## How It Works

New Customer LTV represents the initial revenue value of acquired customers. This is the baseline—actual LTV grows as customers make repeat purchases over time.

***

## When to Use

| Scenario              | Action                                             |
| --------------------- | -------------------------------------------------- |
| CAC payback           | Compare to CPA for first-order payback             |
| Cohort analysis       | Track how first-order value trends                 |
| Acquisition targeting | Higher New Customer LTV indicates better targeting |
| AOV optimization      | Strategies to increase first-order value           |

***

## Related Metrics

| Metric                                                                         | Relationship                |
| ------------------------------------------------------------------------------ | --------------------------- |
| [LTV](/reference/metrics/orders/ltv/ltv)                                       | Full lifetime revenue value |
| [New Customer AOV](/reference/metrics/orders/aov/new-customer-total-aov)       | Same metric, different name |
| [New Customer CPA](/reference/metrics/orders/performance/cac)                  | Cost to acquire             |
| [Returning Customer LTV](/reference/metrics/orders/ltv/returning-customer-ltv) | Repeat order value          |

[See all LTV metrics →](/reference/metrics/orders/ltv)