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If you're using CLV to determine the cap on the cost of acquisition then the average is important unless you know what kind of customer you're buying in advance
by fleitz 15y ago
If you're using CLV to determine the cap on the cost of acquisition then the average is important unless you know what kind of customer you're buying in advance.
- pospischil 15y agoWell, yes: average CLV is important for acquisition, but using an average retention rate to calculate CLV will lead to a grossly inaccurate CLV calculation.