What a customer is worth.
From revenue per customer, gross margin and churn, get lifetime value, LTV:CAC and CAC payback. Then see how much one point less churn adds.
Customer lifetime value (LTV)
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- Average customer lifetime
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- LTV : CAC
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- CAC payback
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- LTV with lower churn
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- LTV gained per customer
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How it is calculated: LTV = revenue per customer × gross margin ÷ monthly churn. Lifetime = 1 ÷ monthly churn. LTV:CAC = LTV ÷ CAC. CAC payback = CAC ÷ (revenue per customer × gross margin). This simple model assumes churn stays the same every month and leaves out upgrades and discounting. Default values are an example: enter your own.
Other free tools
Read https://www.nochurn.sh/llms.txt,
then follow https://www.nochurn.sh/docs/quickstart/
to add NoChurn to this app. Use a test key
(nc_test_…) until I say we go live.
Stop leaking revenue.
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