Clarify how customer lifetime value changes when you focus on profit instead of top-line revenue. Learn the key levers—margin, retention, discounting, and acquisition costs—to make smarter decisions.
Revenue CLV ignores ______ that reduce cash you actually keep.
channel attributions
pageview bounce rate
variable costs and refunds
inventory turns only
Profit-based CLV typically multiplies expected revenue by ______ before discounting.
return on ad spend
average order value only
customer satisfaction index
contribution margin %
When comparing offers, CLV estimates should incorporate a ______ rate to reflect time value of money.
cookie decay
pixel firing
churn acceleration
discount
If CAC is added, the decision metric becomes CLV minus ______.
gross bookings
inventory carrying cost
refund rate only
customer acquisition cost
A higher retention rate generally ______ profit-based CLV, holding margin and CAC constant.
increases
always halves
has no effect
decreases
Using revenue CLV instead of profit CLV tends to ______ channel performance for low-margin products.
perfectly balance
cancel out
overstate
understate
In subscription models, profit CLV often uses ARPU times margin divided by ______.
inventory shrink
NPS
churn rate
CPC
Including upsell and cross-sell typically ______ CLV if retention is unchanged.
raises
lowers
eliminates
randomizes
A price cut can lower profit CLV even if orders rise when ______ compresses.
cookie window
impressions
margin
reach
For high-variance cohorts, teams often report CLV as a ______ with a median and confidence interval.
binary flag
single deterministic point only
distribution
server log
Starter
Good start—review margin, CAC, and discounting to translate sales into profit-based CLV.
Solid
Nice—tighten assumptions about retention drivers and variable costs.
Expert!
Excellent—your unit-economics lens will drive smarter growth decisions.
