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Lifetime Value

  • unit economics,
  • metrics,
  • cards

Gross profit attributed per potential customer. This metric is the key metric for the entire unit economics framework. It determines how much gross profit a business gets per potential customer. 

It is this value that is used to calculate the contribution margin on the scaling unit flow.

The LTV value is obtained by multiplying the gross profit of a customer by the conversion rate LTV = CLTV×C1.

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