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Customer value

Lifetime value, payback and churn, measured over months.

4 guides
Customer value10 Oct 20266 min read
The Churn Rate Formula, and Why Monthly Times Twelve Is Wrong

Churn rate is customers lost divided by customers at the start. The formula, the denominator traps, monthly to annual, and why blended churn misleads.

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Customer value19 Sep 20266 min read
LTV to CAC Ratio: Why 3:1 Is an Output, Not a Target

Your LTV to CAC ratio is set by margin, churn and how hard you push spend. How to read it, and why a high ratio is usually a warning.

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Customer value19 Sep 20267 min read
The Customer Lifetime Value Formula, and the One Term That Bends It

The CLV formula has four terms. Three move it in proportion, one bends it. Which input is worth fixing, and what the number can actually pay for.

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Customer value28 Aug 20265 min read
CAC Payback Period: How Long Until a Customer Pays You Back

CAC Payback Period: How Long Until a Customer Pays You Back Your blended CAC is $180. Your LTV is $540. That is a 3:1 ratio, which every investor deck files under healthy, and you still cannot cover payroll in month four. Nothing in the ratio is arithmetically wrong. It is simply silent about when the […]

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