A customer's worth sets what you can pay for one.
Every plan starts from what a customer leaves you over time. Take the example store our calculators use. A $100 order keeps $41.80 after product, shipping, payment fees and returns. A customer who orders 1.5 times a year for two years places three orders, which leaves $125.40 before ads. That's the most you could pay to win them and still break even.
The gap between $41.80 and $125.40 shapes the whole plan. Pay more than $41.80 for a new customer and you only make money if they come back, so post-purchase emails and reorder reminders become part of the ad plan. Dair works these numbers out from your own Shopify, ad and email data, then sets the profit targets for each channel. Try yours in the customer lifetime value calculator.
- Margins worked out from your own costs
- What a customer is worth, from your Shopify data
- The most you can pay for a new customer, set per channel