This is the value of a customer over the duration of its relationship with your business. On Malartu we calculate this by multiplying a company’s average sales price by customer purchase frequency by customer gross margin by 1/churn. This gives you the value of the customer but does not take into account the cost to acquire that customer (net value of the customer). It’s important to compare these two metrics to see the profitability of each customer to your business. 

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