2 ms·
LTV = Lifetime value No, it's not what you said. Your explanation misses the segment of customers that want the product every month but wouldn't exert a manua
by tedmiston 10y ago
LTV = Lifetime value
No, it's not what you said. Your explanation misses the segment of customers that want the product every month but wouldn't exert a manual effort over and over again when it could be automated. Hence an increased LTV per customer with no change to the CAC. This doesn't really have anything to do with Sudden but rather subscription business economics. Automatic billing is not inherently bad; it's largely positive and convenient.
Also remember this company is not random — there's a ton of diligence involved with getting into YC as well as with VCs which they are backed.