Business Model Shapes Unit Economics

The general formula of unit economics relates basic business processes such as attracting potential customers, selling them the product, and retaining customers in the business. At the same time, different business models have different approaches to mathematical representation of such metrics as average check (AOV), frequency of transactions (APC) and therefore different business models will have different formula for calculating CLTV. 

Therefore, to start working with unit economics, you need to understand the existing business model.

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