LTV Drivers Walkthrough
In a way, the LTV Drivers report is a specialized version of the LTV report. Both reports allow you to discover differences in LTV between customers who share different characteristics.
But whereas the LTV report requires a manual trial-and-error process of running dozens of reports (or more!) with different filters applied to measure these differences in LTV, the LTV Drivers report automatically calculates the most significant factors behind both your LTVs and repurchase rates and ranks them according to their effect.
The report is split into three sections:
Top positive/negative LTV drivers
To access your LTV drivers, click "LTV drivers" in the "Lifetime value" tab of your left sidebar.
The first section ranks the products, tags (customer tags and/or order tags), and discount codes that correlate with the greatest differences from your average LTV.
Let's focus first on the left side of this section. The "Top positive LTV drivers" table lists the factors with the strongest positive correlation with LTV.
One way to think of this is that if you were to run separate LTV reports on a 24-month time frame filtered for each individual product, customer tag, order tag, and discount code, and then rank the 10 factors with the highest average LTV, you would end up with this same table (but would be quite exhausted afterwards!).
For each attribute, you can see the "lift" in LTV it provides relative to average 24-month LTV across all customers, and the 24-month LTV in absolute terms for customers that share the attribute. Using the example above, the top LTV driver is customers whose orders are tagged "Active Subscriber". They have an average 24-month LTV of $265, which is 257% greater than an average customer.
The same logic applies to the right side of this section, except it lists the factors with the strongest negative correlation with LTV.
Referring back to the example, customers who ordered the "Vegan Marzipan Shake Subscription" have lower average LTVs than customers with any other shared attribute. Their average 24-month LTVs are $31, which is 58% less than average.
Insights
The "Insights" section is similar to the top LTV drivers section, except it focuses on correlations with retention metrics instead of LTV.
Insights in green text highlight similarities in customers with the highest repurchase rates, while insights in red text highlight similarities in customers with the lowest repurchase rates.
As with the first section, only products, order tags, customer tags, and discount codes are included, and a minimum threshold of customers must be met for an attribute to be a potential insight in this section.
Breakdown table
And at the bottom of the report, you’ll find a customizable table that allows you to dig deeper into your top drivers by toggling dates, applying filters, and analyzing other factors.
Although LTV Drivers and Insights are only available for products, tags, and discount codes, the Breakdown table allows you to compare 24-month LTVs based on differences in:
- Product
- SKU
- Product type
- Country
- Customer tag
- First-order tag
- First-order discount code
You can quickly identify each factor's influence on LTV relative to your average by noting the color: factors that correlate with higher-than-average LTV are highlighted in shades of green, while negative factors are highlighted in shades of red/orange.