A financially rigorous view of customer value: discounted cash flows, acquisition payback, and marketing ROI — for budget conversations that need more than a single number.
This model assumes a constant annual retention rate and revenue growth rate — a standard simplification of full cohort modelling, accurate for planning purposes.
Customer Acquisition
€
Acquisition cost per customer (CAC): €200
Revenue & Margin (Year 1, per customer)
€
How much revenue per retained customer grows each year
Profit retained after product/service cost
Retention & Discounting
Probability a customer stays another year
Annual rate used to bring future profit to present value
Customer Lifetime Value
€338
Net Present Value of profit contribution, after acquisition cost