CAR (Cart Abandonment Rate)

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How to find out LTV in Google Analytics
To evaluate the metric's value, go to the Audience section and select Total Value. The report will show you revenue per user for the entire period. To calculate LTV, you will need to subtract the cost of customer acquisition from this amount.

Important information about the Total Value report:

Google Analytics takes into account customer data for the last 90 days;
to collect information about visitors, the system uses cookies, so if the client does not accept them, you will not receive information about him;
The analytics system cannot calculate the client's expenses because it requires additional information.
To obtain information via Yandex Metrica, click on the "Visitors" tab (it is located in the main menu on the left). From the report, you can find out information about how many and for what amount in total purchases were made. This will be useful for determining LTV.

How to understand whether LTV is normal or not?
To determine whether the indicator is normal, you need to compare it with CAC. Their ratio (LTV: CAC) will show whether the business is operating efficiently:

< 1 : 1 - the company attracts clients at a loss and wastes money on advertising;
1:1 - advertising costs are equal to the profit it brings, that is, there is no real income from advertisements;
3:1–4:1 is the ideal ratio, which indicates a solid business model;
5:1 - the company may be growing more actively, but invests too little in marketing.
The LTV:CAC ratio is not constant, as the situation can change, for example, when a new competitor enters the market and takes away some of the customers.

This metric speaks for itself. It shows how many south africa telegram data people (in %) filled the "Cart" on the site, but did not decide to make an order. CAR is useful for online stores to know.

The following formula is used for calculation:

CAR = (Number of users who abandoned the cart / Number of users who added an item to the cart) * 100%.

Here are some reasons why users abandon their shopping carts:

we didn't expect the cost of the goods to be so high;
went to an online store to search for products, not to buy them;
found where to buy cheaper;