Hey Sabri, I have this to-die-for curiosity that’s literally burning a hole through my head! When you said in your book that we only focus on the power 4% that generates 64% of our revenue (aka extreme Pareto rule) – shouldn’t we also calculate our LTV based on that power 4% as well? I mean if that’s who we’re trying to attract and get as customers, then why calculate the LTV of your business as a whole instead of just segmenting the power 4%? Isn’t that a more accurate approach? So you’ll know allowable CPA etc
Hey Sabri, I have this to-die-for curiosity that’s literally burning a hole through my head! When you said in your book that we only focus on the power 4% that generates 64% of our revenue (aka extreme Pareto rule) – shouldn’t we also calculate our LTV based on that power 4% as well? I mean if that’s who we’re trying to attract and get as customers, then why calculate the LTV of your business as a whole instead of just segmenting the power 4%? Isn’t that a more accurate approach? So you’ll know allowable CPA etc