Margin Notes

LTV Calculation

LTV Calculation

From Lean Marketing by Allan Dib — Chapter 15

The Framework

LTV = Annual profit per customer × Average customer tenure. Annual profit = Annual revenue per customer − Variable costs (COGS, service delivery, credit card fees).

How It Works

LTV Calculation provides a structured approach to understanding Associative Coherence, Client Financed Acquisition, Conversion Optimization as presented in Chapter 15 of Lean Marketing.

Related Concepts

Concepts explored in the same chapter:


📚 From Lean Marketing by Allan Dib