Definition
Profit per Customer
The direct revenues and costs associated with a single customer, used to assess business viability.
Formula: Profit per Customer = LTV - CAC - Cost-to-Serve
Worked example
Customer LTV of $2,000, CAC of $500, and lifetime cost-to-serve of $800 = $700 profit per customer.
Related
- Margin Intelligence→ (how Bear Lumen applies this)
- Customer Margin
- Cost-to-Serve
- Usage-Based Pricing
- All definitions