Lesson objectives
- Calculate a simple lifetime value
- See how retention affects acquisition budgets
Lifetime value in one line
A simple estimate: average order profit × average number of purchases per customer. The higher this number, the more you can afford to spend acquiring customers - and the more resilient the business.
- Acquire
- Convert
- Onboard
- Retain
- Refer
Action steps
- Estimate your average lifetime value
Checklist
- LTV estimated
- Repeat purchase rate known