You’re running a Search campaign for an accounting software provider that wants to estimate lifetime customer value as a primary benchmark for performance. They charge $10/mo for Basic service and $20/mo for Pro. Which formula best describes their average lifetime customer value across all service offerings?
- A) ($10)*(% Basic customers)*(Basic average lifetime in months) + ($20)*(% Pro customers)*(Pro average lifetime in months)
- B) ($10)*(% Basic customers) + ($20)*(% Pro customers)
- C) ($10+$20)*(% Basic customers)*(Basic average lifetime in months)/($20)*(% Pro customers)*(Pro average lifetime in months)
- D) ($10*$20)(Total monthly conversions)/(Total customer count)
Explanation: Life time value cannot be decided in months or years. There is no way to determine how long your customer will keep using your service.
You can read more here: https://support.google.com/partners/answer/2796446?hl=en