Heavy LTV companies forget that the LTV model does not create sustainable competitive advantage.
FORBES: The Dangerous Seduction of the Lifetime Value (LTV) Formula
Many consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula.
This may be the single most important issue and it lies at the heart of why the LTV model eventually breaks down and fails to scale ad infinitum.
The LTV Model Is Used To Rationalize Marketing Spending .
In The Dangerous Seduction Of LTV, venture capitalist Bill Gurley of Benchmark Capital pointed out ten pitfalls associated with one increasingly notorious metric: the lifetime customer value model (LTV).
FORBES: In Defense Of The Lifetime Value (LTV) Formula
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