Hey, I fear you did something wrong: at 3:13 what you're asking us is if our business will be profitable at the end. The CLV was already calculated by multiplying 750 * 5 = 3,750. You should rephrase as "If the cost to acquire the customer is $2000, will be a profitable decision to keep investing in marketing?
Hello Joao, thank you for taking the time to watch our video and providing your feedback. We appreciate your effort to share your perspective with us. We wanted to clarify that the purpose of the calculation at 3:13 in the video was to determine the customer lifetime value, which is a metric used to identify the worth or value of a customer to a business over their lifetime. The purpose of this calculation was not to determine whether our business would be profitable or not. We appreciate your suggestion to rephrase the question for determining the profitability of a marketing campaign. We hope this clears up any confusion, and we appreciate your engagement with our video.
If a customers generated 750 dollars of profit each year, I think that this customer should generate a higer revenue. This 750 dollars are the revenue generated by the customer in a year minus the amount of money spent to aquire the customer.
Hiyey, I'm a bit lost. Cause I followed the formula in the video and got 3750. But judging by the responses in the comments, does it mean that the formula for CLV = annual revenue x average number of reterion period - cost to acquire the customer?
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Hey, I fear you did something wrong: at 3:13 what you're asking us is if our business will be profitable at the end. The CLV was already calculated by multiplying 750 * 5 = 3,750. You should rephrase as "If the cost to acquire the customer is $2000, will be a profitable decision to keep investing in marketing?
Hello Joao, thank you for taking the time to watch our video and providing your feedback. We appreciate your effort to share your perspective with us. We wanted to clarify that the purpose of the calculation at 3:13 in the video was to determine the customer lifetime value, which is a metric used to identify the worth or value of a customer to a business over their lifetime. The purpose of this calculation was not to determine whether our business would be profitable or not.
We appreciate your suggestion to rephrase the question for determining the profitability of a marketing campaign. We hope this clears up any confusion, and we appreciate your engagement with our video.
If a customers generated 750 dollars of profit each year, I think that this customer should generate a higer revenue. This 750 dollars are the revenue generated by the customer in a year minus the amount of money spent to aquire the customer.
CLV considering acquisition cost CAC is 750*5 - 2000 = 1750
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Hiyey, I'm a bit lost. Cause I followed the formula in the video and got 3750. But judging by the responses in the comments, does it mean that the formula for CLV = annual revenue x average number of reterion period - cost to acquire the customer?
Oh. You have a way of expressing CLV that is really attractive and easy for me to understand. Thank you very much
Thank you for your positive feedback!
It is not specified if the $2000 was spent for one year or 5 years to acquire the customer
1750
Clv= $3750
Dont forget to consider the acquisition cost
ltv = 1750
The CLV here is 1750$
its 1750
CLV = $1,750