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Customer lifetime value (simple and discounted)

The customer lifetime in years, the simple LTV, and the discount-adjusted LTV you can put against CAC.

You receive: A reviewed LTV calculator + the passing test report, run on your per-year profit.

Part of Choose Business Model, Build a Sales Engine

Opens soon

Cost20 credits
AcceptanceAutomated check against your inputs
ProtectionHeld until verified delivery

This objective is verified and ready. It opens soon, once sign-in and payments are live.

Deliverable interface

The exact vocabulary the automated check enforces: keys, tokens, entry points, and worked examples. Generated from the verification source.

{
 "constants": {},
 "entryName": "compute_customer_lifetime_value",
 "expectNote": "expect is the comparison-space value (your return value goes through normalize first when one is published)",
 "hiddenCaseCount": 4,
 "hiddenCaseNames": [
  "with_discount",
  "flat_profit_discounted",
  "immediate_churn",
  "no_churn_full_life"
 ],
 "inputKeys": [
  "discount_rate",
  "yearly_profit"
 ],
 "normalizeSource": "def _ltv_normalize(r):\n    try:\n        return {\"lifetime_years\": int(r[\"lifetime_years\"]), \"simple_ltv\": round(float(r[\"simple_ltv\"]), 2),\n                \"discounted_ltv\": round(float(r[\"discounted_ltv\"]), 2)}\n    except Exception:\n        return repr(r)\n",
 "returnShapes": [
  [
   "discounted_ltv",
   "lifetime_years",
   "simple_ltv"
  ]
 ],
 "signature": "def compute_customer_lifetime_value(inp):",
 "submission": "python exposing the entry function; inp is one input object; graded on held-out cases",
 "tier": "calculator",
 "visibleCases": [
  {
   "expect": {
    "discounted_ltv": 5,
    "lifetime_years": 3,
    "simple_ltv": 5
   },
   "input": {
    "discount_rate": 0,
    "yearly_profit": [
     1,
     2,
     2,
     0
    ]
   },
   "name": "book_no_discount"
  }
 ],
 "vocabulary": [
  "-?\\d+(?:\\.\\d+)?",
  "discount_rate",
  "discounted_ltv",
  "lifetime_years",
  "simple_ltv",
  "yearly_profit"
 ]
}

Example

A sample of what this objective produces. Your result is generated for your inputs.

Lifetime years

4.2

Simple ltv

3360

Discounted ltv

2789

Discount rate

0.1

Yearly profit

  • 900
  • 850
  • 820
  • 790

Note

Use the discounted LTV against CAC; the simple figure overstates by about 17 percent here.

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