The Most Important and Powerful Model for All (Direct Response) Marketers

If you’re running paid media of any sort (Facebook, TV, affiliates, direct mail, or otherwise), you have to understand one thing above everything else: the value of a customer. It is crucial to help you manage media. The lesser-considered discussed but equally important benefit of having a customer LTV model is that it helps to identify key points of leverage in your business and where to direct resources for testing and optimizing.

In this video, I walk through the customer LTV model (aka, the margin model or the unit economics model). Regardless of your understanding and use of the model, my goal is that you will learn something new and approach it in at least a slightly different way than before.

As always, please let me know if you have any questions or comments.

Get My Proven Process to Scale Your eCommerce Business AND Build Your Brand

See the exact analyses that I conduct for my clients & the actions to prioritize based on those learnings. I also include a section specifically for subscription businesses and a bonus on crafting incredible customer experiences.

Featured Articles

Babak’s approach is equal parts brand-based and data-driven analytics. He brings deep practical experience to help frame each decision we make along the way.

Caith Chapman
GM, eCommerce & Consumer Products, Tastemade

Reader Interactions


  1. John Sandfer says

    Hello there, would it be possible to get a copy of this model for my personal use? I am considering a startup and this may help me to answer some of my questions. Thank you.

Leave a Reply

Your email address will not be published. Required fields are marked *