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


This post is by David Skok from For Entrepreneurs Blog


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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 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 discounted...

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