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Customer Lifetime Value

  • unit economics,
  • metrics,
  • cards

Gross profit per customer. Shows how much the business earns from one customer for the entire customer lifetime. 

Calculated by the formula CLTV = (AOV-COGS)×APC-1sCOGS where AOV-COGS is the gross profit of one customer transaction, and APC is the average number of transactions a customer makes. And 1sCOGS is the additional spend to COGS incurred by the business on the very first transaction. 

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