Is LTV by Source *per* user (from that source)?

Clay Nichols's Avatar

Clay Nichols

24 May, 2016 09:10 PM

Is this broken down by both Source AND user?

The values seem a bit high to be a "lifetime customer value".
(My calculated average is more like $350. And our overall LTV (calculated by CG ) for "referer" is $400-ish.)

So a LTV per custoemr of $433 to $1700 seems high.

(I'd love to feel confident that it's per-user, but do not want to make marketing decisions based on bad info.

  1. 1 Posted by Drew Songer on 31 May, 2016 03:17 PM

    Drew Songer's Avatar

    Hi Clay,

    You are seeing this drastic difference in LTV due to the sample size of you Adwords group. There is currently only one customer in that group. Below you will find the raw number used in that calculation.

    MRR of group = 74
    Average trailing 12 month Churn rate = 4.166 -> You had 1 month with a 50% churn rate. All other months were 0.
    Paying customers in group = 1

    LTV = ((74/4.166)/1)*100 = 1776.28

    We are planning to add the trailing churn rate and number of customers to the mouse over function.

    Does this all make sense to you?

    Best,
    Drew

  2. 2 Posted by Clay Nichols on 01 Jun, 2016 01:56 AM

    Clay Nichols's Avatar

    Yep. Thanks!

  3. Drew Songer closed this discussion on 01 Jun, 2016 01:29 PM.

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