Did you know that the average lifetime value of a Starbucks customer is $15,000?!
Customer Lifetime Value (LTV) estimates the total dollars you’ll earn from a customer before they churn. It effectively tells you,
“If I add up all the deals I do with a customer, on average I’ll squeeze a total of [$x] out of them before they bounce”
Let me teach you how to calculate customer life time value, customer acquisition cost, and LTV to cac.