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Shopify LTV Benchmarks for 2023: How does your brand stack up?

2023 will be here before we know it, so Varos and Bamboo have partnered up to share the latest Shopify Lifetime Value (LTV) benchmarks and analysis across beauty, fashion, food & beverage, and home & garden verticals. We hope it helps with 2023 planning.

To see how your granular KPIs stack up against other companies just like yours, try Varos today. Takes just 2 minutes.

If you want support to drive more profitable growth in 2023, reach out to the team at Bamboo

Here are the benchmarks and analysis: 

Beauty Brands LTV Benchmarks

Top beauty brands earned an extra $40 per customer by Month 12. They achieve this by earning more revenue per customer in Month 1 and then continuing to expand that revenue per customer until LTVs flatten out around Month 7. Beauty appears to have lower retention rates after Month 7 than some other verticals we analyzed, so we recommend that beauty brands ensure they are profitable on customers well before that point. For Bamboo’s top beauty clients, we generally aim to be profitable on customer acquisition in Month 1.

Fashion Brands LTV Benchmarks

Top fashion brands also out-earned their peers in Month 1 and continued doing so through Month 6. The end result is an extra $59 per customer by Month 12 for top performers. LTV curves flattened out for Fashion brands around Month 5, so we recommend ensuring profitability on new customer acquisition before that. For Bamboo’s top fashion clients, we like to see profitability on customer acquisition costs by Month 2 (preferably month 1). 

Food and Beverage Brands LTV Benchmarks

In Food and Beverage, monetization after Month 1 is clearly what separates the best from the rest. Top F&B brands continue stacking lifetime value each month while the Median F&B brand earns less early on and stops monetizing customers almost entirely by Month 6. Top F&B brands are earning $40 more per customer in Year 1 and appear to keep on earning revenue from customers after that point. If you’re an F&B brand who has strong repeat rates, you should be okay with longer customer acquisition payback periods – possibly up to 6 months or more.

Home & Garden Brands LTV Benchmarks

In terms of Lifetime Value, top Home and Garden brands outperform every other vertical. 

H&G also has the biggest gap between “the best” and “the rest”. Top H&G brands earn almost triple the revenue per customer in Month 1 and end up earning a whopping $122 more per customer by the end of Year 1. This gap makes sense in a vertical that includes both furniture and small H&G items, but it’s clear that the market potential for any H&G brand is large for brands that can monetize well upfront and then upsell customers successfully over time.

Shopify Stores LTV Benchmarks

When we look at the overall roll up, it’s clear that top Shopify brands monetize their customers better early and they monetize their better in later months too. The best Shopify brands earn an extra $56 per customer in Year 1 by outperforming their peers in both acquisition and retention.

CONCLUSION: In our CAC and ROAS obsessed industry, many teams ignore 50% or more of the value they capture when they successfully acquire a customer. Top Shopify brands earn more value at every stage of the customer journey, not just in the customer’s first month. With that, it’s critical to understand how your full customer journey stacks up to your peers! 

To see how your granular KPIs stack up against other companies just like yours, try Varos today. Takes just 2 minutes.

If you want support to drive more profitable growth in 2023, reach out to the team at Bamboo

Source: Varos

Tweets

Chase Dimond | Email Marketing Nerd 📧
@ecomchasedimond

Bottom line: I’m recommending Varos to you all because it’s FREE (for now) and it’s already added a ton of value for myself and my clients.Check it out 👇

Social Savannah
@social_savannah

I would definitely recommend checking out Varos. With Varos you can easily see how your peers are performing, for free. You get insights into not only TikTok Ads benchmarks, but also similar data for Facebook Ads, Google Ads, and more. #VarosAmbassador

jason wong
@eggrolI

Varos allows thousands merchants to upload anonymize marketing data across meta and google and aggregating it to show what the average is across different categories and ad spend

Cody Plofker
@codyplof

With varos.com, I can see exactly how our performance across channels stacks up against our competitors in our space.

Barry Hott ☄️
@binghott

Compare your ad performance to benchmarks of companies just like yours, anonymously.
I would've killed for this tool years ago and now it's here and oh it's free. Amazing.

Ron Shah
@obviceo

I've been seeing some content about @Varos_com so we decided to check it out.

One underrated feature of theirs is the Shopify Benchmarking, which is FREE btw.

Literally impossible to access this data anywhere else. Check out what we're seeing at @my_obvi 👇

William Harris
@wmharris101

I'm loving what @Varos_com is doing with providing much more relevant benchmarks for #ecommerce... especially since it shows that we are absolutely DOMINATING @Elumynt on #facebookads!

This is in the Baby and Children vertical.#fbads #ppcchat #retail #dtc

Chase Dimond | Email Marketing Nerd 📧
@ecomchasedimond

Bottom line: I’m recommending Varos to you all because it’s FREE (for now) and it’s already added a ton of value for myself and my clients.Check it out 👇

Social Savannah
@social_savannah

I would definitely recommend checking out Varos. With Varos you can easily see how your peers are performing, for free. You get insights into not only TikTok Ads benchmarks, but also similar data for Facebook Ads, Google Ads, and more. #VarosAmbassador

jason wong
@eggrolI

Varos allows thousands merchants to upload anonymize marketing data across meta and google and aggregating it to show what the average is across different categories and ad spend

Cody Plofker
@codyplof

With varos.com, I can see exactly how our performance across channels stacks up against our competitors in our space.

Barry Hott ☄️
@binghott

Compare your ad performance to benchmarks of companies just like yours, anonymously.
I would've killed for this tool years ago and now it's here and oh it's free. Amazing.

Ron Shah
@obviceo

I've been seeing some content about @Varos_com so we decided to check it out.

One underrated feature of theirs is the Shopify Benchmarking, which is FREE btw.

Literally impossible to access this data anywhere else. Check out what we're seeing at @my_obvi 👇

William Harris
@wmharris101

I'm loving what @Varos_com is doing with providing much more relevant benchmarks for #ecommerce... especially since it shows that we are absolutely DOMINATING @Elumynt on #facebookads!

This is in the Baby and Children vertical.#fbads #ppcchat #retail #dtc