The formula is no more complicated than the previous indicators

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Here is the CLV formula:

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ROAS
Means return on investment in relation to promotion costs. But there is still a difference with ROMI - ROAS takes into account expenses only for the advertising campaign itself, without taking into account the product margin and without taking into account the cost of other marketing tools.

:

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Thus, KPI allows us to evaluate the results of long latvia consumer email list -term investments, rather than the immediate return to the budget.

AOV
Or average order value. In simple terms, this is the average check. The AOV metric allows you to evaluate the profitability of long-term investments in relation to the total number of orders.

The average purchase receipt is calculated using the formula:

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Note: Above we have considered only the key indicators that are used most often. But there are others.