4 ms·
Not sure if LTV for blue apron is in their IPO docs or not, but to put that number into perspective: their cheapest plan is $60 per week, so if they hold onto a
by ethanhunt_ 9y ago
Not sure if LTV for blue apron is in their IPO docs or not, but to put that number into perspective: their cheapest plan is $60 per week, so if they hold onto a customer for 6 months, that $1560. 20% profit margin would mean $312. No idea if those numbers are anywhere close to correct.
The magnitude of CAC and LTV are only meaningful together. A ferrari dealership might have a $5000 cost to acquire a customer and that would be a bargain, because their LTV is $250k+.
- deleted 9y ago[deleted]
- hkmurakami 9y agoQ - shouldn't CAC be balanced with Gross lifetime profit, not lifetime revenue per user?
- tedmiston 9y agoNot sure if I'm the average meal kit customer, but I don't choose to receive them every week. More like once every 2-3 weeks. Just something to consider in a customer's LTV.
- ghaff 9y agoAccording to their S-1, it seems as if their typical customer does indeed place an order pretty much every week. That certainly wouldn't be me. But, then, I think about using some of these services from time to time--but almost always end up driving to the store and picking up my own ingredients.