The Customer Life Time Value Postulate:

• What is one customer’s value to a business, and what should a business be ready to pay to earn the said customer?
• It all boils down to a postulation called “Customer Life Time Value” (CLTV), which is used to narrate the estimated value of one customer, to a business.
• It is essentially the average amount of money made over the lifespan of an average customer, discounted by future Cash Flows.
• The higher the value, the higher the Marketing Budget can be to acquire each customer.
• This is not only a crucial concept to understand in business, but also for investors that are looking to put money in Consumer Oriented Companies.