LTV Calculator
Lifetime Value: The total money that the customer leaves with the company.
The Metric of Long-Term Success
If you have a Netflix or a gym, you don't want the customer to buy just once and never come back. TheLifetime Value(Lifetime Value) calculates exactly that: all the money the customer will pour into your company during the entire time they remain loyal.
The Golden Rule: LTV greater than CAC
The secret of billion-dollar companies (like subscription software ones - SaaS) is to maintain theLTV at least 3x higher than CAC. This means that, even if it is very expensive to convince someone to subscribe to the service (high CAC), the customer will stay there paying for so many years that it will pay for itself and still generate huge profit in the long run.
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