Contribution Margin per Order
Profitability per transaction after factoring in returns and associated costs.
$30.00
Fashion Retail CLTV Optimization Calculator
Mapp directly improves all critical levers within the CLTV formula by: 1. Reducing CAC through advanced targeting and personalisation. 2. Increasing purchase frequency (F) and customer tenure (T) via precise, timely remarketing and automated lifecycle management. 3. Maximising contribution margin (M) by enhancing conversions, reducing return rates, aligning merchandising decisions with customer insights, and ensuring the optimal customer experience. By leveraging Mapp's AI-driven capabilities, fashion retailers can systematically optimise their CLTV, ensuring robust, long-term profitability at the individual customer level.
Calculator Inputs
Customer Acquisition Cost (CAC)Total cost spent on acquiring a new customer.
$100.00
Average Order Value (AoV)Average dollar value of a single purchase.
$100.00
Gross Margin (%) per TransactionPercentage of revenue that exceeds the cost of goods sold.
%
Return Rate (%)Percentage of orders that are returned.
%
Return Cost per TransactionCost associated with processing a return.
$6.00
Frequency of Repeat PurchasesNumber of purchases a customer makes per year.
2
Average Customer Tenure (years)Average number of years a customer continues to make purchases.
2.0
Calculator Results
Customer Lifetime Value (CLTV)
Cumulative contribution margin a customer generates over their lifetime, net of CAC.
$20.00
CAC Payback Period
Number of orders needed to recoup the customer acquisition cost.
3.33
