What is often overlooked when building a lifetime value model

Over the past six months, I’ve been working on SketchBook, a subscription based sketching app, where I spent a lot of time thinking about the concept of customer lifetime value (LTV) and customer acquisition cost (CAC). Tons, and I mean tons, of content has been written about both these concepts from the marketing gurus of this world, but as I built out an LTV model for SketchBook, I realized a few complexities with building such a model that are often overlooked. Continue reading