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Average lifetime value of customers : denotes the average total revenue brought by a customer during his lifetime. Please note that by “revenue” we do not mean “profits”, but only the proceeds of sales. Why is this indicator important ? Because when you want to determine the maximal cost of acquisition of a customer, you must compare it with the total revenue that this customer will get you (since nothing says that the customer will buy only once). What is more, this indicator includes the impact of refunds (a customer who purchases a product, asks for a refund and never purchases from the company anymore has a slightly negative lifetime value, since they are fees associated with a refund, and the company has to bear them).