Frequency is the LTV multiplier: with the same NCM per order, doubling frequency doubles the value of each customer. It is much cheaper to sell more to an existing customer than to acquire a new one.
Shopify: Customers → Repeat Purchase Rate gives you a direct approximation. Or calculate it: total orders for the year ÷ unique active customers for the year.
With a frequency of once per year, LTV practically equals the NCM of a single order. That requires a very low CAC to be profitable. A business with recurring purchases (3+ per year) can afford a much higher CAC.
| Status | Range |
|---|---|
| Healthy | > 4 purchases/year per active customer |
| Alert | 2–4 purchases/year |
| Critical | < 2 purchases/year (single-purchase model) |
Post-purchase email/SMS timed to the average product repurchase cycle (e.g., if they buy every 45 days, a reminder on day 40) can increase frequency 20–30% without additional acquisition cost.
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