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The Dangerous Seduction of the Lifetime Value (LTV) Formula

4 pointsby ad93611about 11 years ago

1 comment

QuasiAlonabout 11 years ago
all valid points. from my experience, it&#x27;s important to perform a cohort analysis alongside the cLTV analysis. these complement each other and bring in more insights and clarity as to what&#x27;s going on in your business and how well your churn&#x2F;expansion assumptions held in the past. Jason Cohen from A Smart Bear also has a lot of interesting insights on the LTV calculation and use. For example: <a href="http://blog.asmartbear.com/why-i-dont-like-the-ltv-metric.html" rel="nofollow">http:&#x2F;&#x2F;blog.asmartbear.com&#x2F;why-i-dont-like-the-ltv-metric.ht...</a>