What is customer lifetime value and why does it matter? Customer lifetime value, or LTV, is the monetary value of a customer over the customer-business relationship. 

Say an average LTV for an online clothing boutique is $50, and the cost to acquire a new customer (CAC) using online marketing tactics is $60. This clothing boutique would be losing money because it wouldn’t be making enough on its existing customers to acquire new ones. 

Here’s how to calculate your LTV: 

Customer Lifetime Value = Customer value x Avg lifetime value of a customer

To get customer value and average lifetime value, use these handy calculations from HubSpot. They have a calculator you can download, too. 

Now that we know how to calculate LTV, how can email help? Keeping existing customers engaged by promoting content related to previously purchased products is a great way to increase the number of goods purchased as well as the time that a customer spends with the brand. And, since email is marketing to existing customers or subscribers, you don’t have to worry about added costs.


How Gymshark uses purchase data and details to upsell 

Let’s take a look at gym fave Gymshark’s purchase journey to see how the brand uses purchase data and details to upsell other products post-purchase. Upsell emails generally promote different items regularly after the original purchase. They can also be more targeted because the buyers have purchased and browsed the site and, through purchasing, have provided additional information.

First, we notice right off the bat that most of the emails sent after the purchase of our Gymshark order cater to male buyers. This makes sense given the information we’ve provided. This segmentation could have also been determined through browsing history on the website. Six days after purchasing a Gymshark keychain, this email is sent out regarding the other clothing products the brand offers as well as its community:

Gymshark post purchase upsell email 84x300


Digging a bit deeper, we can look at the month-over-month analysis of emails sent. On average, Gymshark sent ~10 emails in January. These are 10 opportunities to persuade existing customers to purchase additional items: 

Gymshark sending behavior screencap circled 300x163


According to the Harvard Business Review, it’s anywhere from five to 25 times cheaper to market to existing customers than to acquire new ones. Including purchase upsell emails promoting related products or browse abandonment emails after initial purchase is a great way to engage customers long term. Get more upsell email inspiration from our advanced email search feature.