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How can e-commerce software increase the lifetime value?

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An e-commerce company has a variety of metrics to assess and evaluate. To gauge the success of your company, you can look into bounce rates, conversion rates, and CTRs. But the most significant of all is LTV or Lifetime value for the consumer.

What is an App User's LTV and Why does it Matter?

App Lifetime Value (LTV) is the average value over an app's lifecycle for an app or a client. It is an important metric and can have several different forms. You can share the app with friends and relatives on sites where your prospects hang out or recommend your app to them.

Revenue can also be drafted in-app advertisements and transactions form. For example, if a consumer does not use the app to spend money but shares it with others who do use it and spend money, it's worth it.

The LTV of your end-users is needed to understand. This will definitely allow you to calculate a marketing campaign's return on investment (ROI) effectively. It is not prudent for advertisers to solely focus on new user acquisition. The acquisition of a new customer costs six or even seven times more than keeping a current one.

Calculating Consumers' Lifetime Value

There are many different ways of calculating this important metric. The three crucial stats you need are Average order, value Average orders per week (month or year)Weekly (month or year) value you need to take a few clients, decide how much they spend on orders and average over a set amount of time. So add these together to get the total amount of time they spend.



Can an Appraise the Lifetime Value of a Client?

There are different factors that are responsible for the lifetime value of the consumers and one of them is a mobile app. To produce a high investment return (ROI) of your marketing campaigns, you need to increase the users ' lifetime value.

This can be done by increasing the use of the software. There were several approaches known to increase customer LTV. We will cover the methods in this post which will bring success to your e-commerce business.

  • Improve UI

Your UI design for your mobile app is also a key element in user engagement. If your app makes it difficult for users to access those functions, they'll get annoyed and leave the app immediately. To understand pain points, use analytics and try to create a smooth engaging experience. This will increase the use of your app while increasing the session time.

No matter what strategies you use to maximize the lifetime value of a customer, in the end, the most important thing is product satisfaction. You can be sure of an improved consumer LTV by increasing user satisfaction.

  • Push notification

Push Notifications can be quite effective in getting the users interested. If you can get users to accept push notifications, you will have a bigger chance to exploit notifications. This will help in increasing in-app interactions and include inactive users.


Push notifications need to be used smartly though. Although push notifications can improve user experience, being too aggressive with them can do the exact opposite, i.e. deter users from using the application. To maximize the engagement level, it is equally important to ensure that your push notifications are customized.

Keep in mind that the timing and size of the message are significant. Keep the message short, and check with A / B to determine the best timing.

  • Mobile advertising

Integrating the user acquisition (UA) strategy with user retention is a successful way to boost LTV from current and potential users of devices. Don't forget to evaluate and refine the mobile advertising campaign with the UA.

For mobile apps, you can launch boost promotions for your e-commerce company to boost app downloads and increase your customers ' LTV. It also reduces the total cost of acquiring consumers and therefore maximizes the sales. For some time, reading and reviewing are important in getting an idea of where you need to spend your campaign budget.

  • Make customer-centered decisions

You need to make customer-centric decisions throughout the product lifecycle to achieve a high lifetime value. Make sure you understand the needs and preferences of the users and create an app that will meet their needs.

Provide help on platforms where the prospects hang out. It includes outlets on social media such as Facebook, YouTube, and Twitter. In addition, the implementation of an in-app support program is also a positive means of improving loyalty and user retention.

  • Mobile deep linking

Deep linking is the method of connecting a URL to a particular page or location within a mobile app. This guides users in a variety of ways to the relevant content including alerts, SMS, email, and social media. It also lets users achieve their goals much quicker.

Consider, for instance, a consumer in some area seeking a particular type of restaurant or hotel. They will be guided through a deeply connected ad inside the app. The search will directly take the user to the intended result, even if it is not enabled, via the app.


Deep linking enables users to witness the effectiveness of an app before it even gets installed. This increases the likelihood of installing your app and may improve a user's lifetime value.

  • Always be accessible

This is actually an essential way to boost user engagement and increase their lifetime value. You need to keep in touch with them on different platforms and enable them to provide input on your goods and services.

Social media is a great place to connect with current and prospective customers and increasing their faith in your brand. Do not forget to use these networks with a real-time strategy, because of the response time on social media matters. Furthermore, these sites provide various ways to spread the word about your product and increase your customer base.

  • Optimize the operation aboard

As you try to acquire new users and hoping to create a long-term commitment, the onboarding experience has to be engaging and sticky. You have to personalize the user's experience and provide them with what they need.

Customers with useless information may be inefficient for your app company and e-commerce. Optimizing the method of onboarding users require thorough research and testing. It is here that A / B research can be very useful.

You'll need to test various flows and see which ones appeal to your users the most. To improve customer retention, you must first inspire them and continue to do so throughout their use.

Final verdict

Commerce companies need to create user engagement and retention oriented app. Although acquiring users is critical, optimizing revenue isn't a cost-effective way. A mobile app can be an effective tool for giving your e-commerce business value.