Just as important as setting prices via markup , knowing the conversion rate and ROI is discovering the profit that each of your customers can pass on to your e-commerce business in a given period.

With this information, you will be able to know (in the end) whether the cost of acquiring a certain target audience compensates or not in relation to the return that this audience gives to your e-commerce.

The formula to calculate the life cycle of your online store's customers is:

Where:

 As an example, let's say that in your online store:

• Customers buy 6 times a year (on average);
• Each customer spends BRL 157,90 (on average) on each purchase;
• Each customer spends 7 years (on average) shopping at your store;
• The gross margin (profit on each sale) is 40%.

When we apply the formula to these values, we get:

 Now you know that, over a 7-year lifecycle, each of your customers contributes R$2.652,72 in purchases to your virtual store.

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Let's suppose you spend R$ 52,10 on sponsored links , SEO content , and digital marketing in general to acquire each of these customers, generating a return of R$ 2.652,72 over 7 years. Would that be a good deal for you? The answer to this question is a starting point for evaluating whether your online store is worthwhile and for making optimization decisions.