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Tip: Ecommerce Lifetime Customer Value
For a retail or ecommerce business, the easiest way to compute LTV is to add up all the purchases a customer makes in your store or on your site. If you don’t take the rate of returns into account you will overestimate your LTV since some of those purchases will be reversed. Luckily, this is easy to handle. If your rate of returns is 5%, you simply discount your LTV by 5%.