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Economics & Business · Marketing
Customer Lifetime Value
Students model customer lifetime value from churn, gross margin and discount rate, with payback period and the LTV to CAC ratio calculated live. The full interactive is available to licensed Education Universe users.
Undergraduate, ProfessionalExplorer
Learning outcomes
- Calculate customer lifetime value.
- Explain the effect of churn on LTV.
- Interpret the LTV to CAC ratio.
Teaching guidance
Ask students which lever, churn or margin, has the bigger effect on LTV and why.
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Customer Lifetime Value is one of the licensed interactives in The Education Universe. This page describes it; teachers use it in lessons and classes with a licence or the free trial.