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Nit: CLTV/CLV/LTV calculations ignore acquisition costs, and are generally used to determine bounds for acquisition costs/investments - They are, however, essen
by ABCLAW 10y ago
Nit: CLTV/CLV/LTV calculations ignore acquisition costs, and are generally used to determine bounds for acquisition costs/investments - They are, however, essentially calculated as the NPV of the customer post-acquisition, which I believe was your point.
NPV calculations, used to determine the value of the entire pipeline, include them.
- orasis 10y agoMost people that I know don't discount the time value of money on their LTV calculations so, in practice LTV != NPV. But yes, NPV would provide a more accurate calculation. (Edit: to be clear on definitions, NPV is "Net Present Value")