4 ms·
This is usually expressed as the long term value (LTV) of the customer. It costs X to get a customer but once they know you they may use you again, refer you to
by runamok 6y ago
This is usually expressed as the long term value (LTV) of the customer. It costs X to get a customer but once they know you they may use you again, refer you to others, etc. and take Y days/weeks/months to repay you for customer acquisition costs. For instance with magazines people used to subscribe for 3 years on average which is why so many companies love subscriptions. They have enough inertia and friction that people just keep paying in many cases.