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What’s your TRUE customer lifetime value (LTV)? – DCF provides the answer — For Entrepreneurs

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Overview The old formula that everyone uses for customer lifetime value (LTV)) –average gross profit per customer divided by churn – ceases to work properly when you have very long customer lifetim…

What's your TRUE customer lifetime value (LTV)? - DCF provides the answer - For Entrepreneurs Skip to content What’s your TRUE customer lifetime value (LTV)? – DCF provides the answer by David Skok 85 Posts Categories Tags Search by Algolia Overview The old formula that everyone uses for customer lifetime value (LTV)) –average gross profit per customer divided by churn – ceases to work properly when you have very long customer lifetimes and negative churn. LTV can become infinite, which clearly doesn’t reflect reality. This post offers a new way to calculate LTV based on

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