LTV

“It is no coincidence that companies that put a heavy emphasis on LTV are also the ones that have massive losses as they scale, frequently even through an IPO.”

“Frequently, the same group that is arguing for more spending is the same one that owns the LTV calculation. This is a mistake. Finance should monitor LTV.”

“Companies need a sustainable, competitive advantage that is independent of their variable marketing campaigns. You can't win a fight with a measuring tape.”

“LTV and calculating LTV is not a business strategy. It is a way of optimizing your marketing channels. And at the end of the day, LTV to CAC, lifetime value to acquisition cost, is simply just an arbitrage game. It is an arbitrage between what you can pay to a…”

“In a lot of ways, I believe LTV and the obsession with marketing metrics like this is what has given the rise to more quantitatively focused growth marketers, a role that has replaced creative, more qualitative marketing manager roles at Silicon Valley startup…”

“Now, LTV does have merit, and it is a helpful proxy to prioritize your marketing and understand the economics of each customer that you acquire, but if relied on entirely, It can be misleading at best and extremely harmful to your business at worst.”