Customer Value: Churn, Lifetime Value and Acquisition Cost

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Customers at the start of the month

Customers who left in the month

Contribution per customer per month $

Marketing spend in the month $

New customers won in the month

Months to show

Enter your numbers, then press Calculate.

From the book, Chapter 15. Fernbox: 24 of 400 left (6% churn), so subscribers stay 16.7 months on average and are worth $221.67 each in contribution, not the $500 that revenue would suggest. At $50 each to win, LTV to CAC is 4.4 and payback 3.8 months. With 120 joining a month, subscribers head for 2,000.

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