SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/founder-customer-lifetime-value

What should customer lifetime value estimate?

LTV estimates the economic value across a customer relationship.

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  1. Value across the customer relationship ✔
  2. Only the first invoice
  3. Total revenue from all customers

Why: Lifetime value looks beyond the first purchase to expected value over the relationship. A useful model accounts for margin, retention, and an explicit time horizon.

Huh, didn't know that: Revenue-based LTV can overstate value when delivery costs are large.

The dad joke
LTV packed a long lunch because it planned to stay awhile.
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References

Answer: Value across the customer relationship. Lifetime value looks beyond the first purchase to expected value over the relationship. A useful model accounts for margin, retention, and an explicit time horizon.

  1. Remitly investor presentation filed with the SEC www.sec.gov/Archives/edgar/data/1782170/000178217022000023/remitlyirdeck030222.htm
    is the projected average revenue, net of transaction expenses, during five years of a customer’s relationship with the business
    Checked 2026-10-11.

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