Brewquets Customer Life Time Value (LTV)

Using the life time value approach from this Shopify blog the LTV of a BQ customer as of 24-04-21 is as follows:

https://www.shopify.com.au/blog/customer-lifetime-value

This figures are done on a broad brush approach without segmenting and is based on the sales data from January 1st 2019 to March 31st 2021.

Large corporates and internal sales to Beer Cartel were removed from the data as per the attached spreadsheet.

Total Customers: 14692

Total Orders: 16721

Average Orders Per Customer: 1.14

Total Order Revenue (all orders in GST and freight paid): $1,430,581.11

Therefore:

Average order value = $97.37

Purchase Frequency: 1.14

LTV inc GST and freight = $110.82

less 10% GST = 100.74

less freight (average $13*1.14 = $14.82) = 87.74

Average gross profit per product = 45%

Total Gross Profit per order = $38.66

On average approximately the following marketing means drive sales (during the same time period), although this is always evolving

Direct 17%

Organic 26%

Referral 28%

Paid 29%

Estimated amount able to be spent per customer acquisition ~ $20 to remain profitable.

If frequency could be increased to 1.5 and average basket value was increased through means of new products this would greatly increase the amount able to be spent per acquisition (e.g. if required during competitive periods).