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In product business it is often measured over multiple purchases and assumptions are made about the repeat rates and in the enterprise or services world LTV can be based on churnrates, which are notoriously hard to predict in an early-stage business. Poorly calculated LTVs can become BVs (bankruptcy values).
This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churnrates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. Impact of the recession on SaaS Sales&Marketing pr. Laughing Out (c)Loud.
Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churnrates - typically get better with time. For example, PR doesn’t scale. Churnrates are another metric that can get harder with scale.
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