Marketing Suite

Customer Value Calculators

What a customer is worth, and what they may cost. Every ceiling in paid acquisition is derived from these two numbers rather than chosen.

How the customer-value numbers hang together

This category answers one question from two sides: what a customer brings in, and what they were allowed to cost. Lifetime value comes first, and it has to be the profit figure — revenue over the relationship tells you nothing about what you can afford, because advertising is paid for out of margin. Acquisition cost is the other side, and neither number means anything alone: the ratio between them is the verdict, with three to one the rough line between growth worth funding and growth that merely looks like it. Time enters next, since a healthy ratio reached over three years is a different business from the same ratio reached in three months — which is why payback matters as much as the ratio itself. And underneath all of it sits retention: every number here improves or collapses depending on how long customers stay, which makes churn the single most leveraged figure in the set.