Episode Summary
In this mini episode of the Free to Grow CFO podcast, Jon Blair discusses the concept of LTV (Lifetime Value) in the context of DTC brands, emphasizing its importance in measuring customer value over time. He highlights common misconceptions about LTV, particularly the confusion between LTV and LTR (Lifetime Revenue), and stresses the need to measure LTV in margin dollars rather than revenue. Jon also explains the significance of time-bound LTV and its role in assessing profitability against customer acquisition costs (CAC).
Key Takeaways:
-LTV is the cumulative value that a customer represents to your brand over time.
-LTV should be measured in margin dollars, not total revenue.
-LTV must be time-bound, expressed in specific time frames.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Free to Grow CFO - https://freetogrowcfo.com/
Transcript
00:00 Understanding LTV: Definition and Importance
03:14 Measuring LTV: Common Mistakes and Correct Approaches
04:59 Using LTV for Business Decisions: Profitability Assessment
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Episode Summary
In this mini episode of the Free to Grow CFO podcast, Jon Blair discusses the concept of LTV (Lifetime Value) in the context of DTC brands, emphasizing its importance in measuring customer value over time. He highlights common misconceptions about LTV, particularly the confusion between LTV and LTR (Lifetime Revenue), and stresses the need to measure LTV in margin dollars rather than revenue. Jon also explains the significance of time-bound LTV and its role in assessing profitability against customer acquisition costs (CAC).
Key Takeaways:
-LTV is the cumulative value that a customer represents to your brand over time.
-LTV should be measured in margin dollars, not total revenue.
-LTV must be time-bound, expressed in specific time frames.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Free to Grow CFO - https://freetogrowcfo.com/
Transcript
00:00 Understanding LTV: Definition and Importance
03:14 Measuring LTV: Common Mistakes and Correct Approaches
04:59 Using LTV for Business Decisions: Profitability Assessment
Mini Episode: My Profitable Cash Rich Brand Doesn’t Need a CFO Right? Wrong
The Free to Grow CFO Podcast
3 minutes 54 seconds
6 months ago
Mini Episode: My Profitable Cash Rich Brand Doesn’t Need a CFO Right? Wrong
Episode Summary
In this mini-episode of The Free to Grow CFO Podcast, Jon Blair challenges a common misconception among DTC brand founders: that a profitable, cash-rich brand doesn’t need a CFO. Jon breaks down why these types of brands often need even more strategic financial support—especially if the goal is to build long-term wealth. It’s not just about managing ad spend and inventory. It’s about turning profits into smart capital allocation and sustainable wealth creation—both inside and outside the business.
Key Takeaways:
-Just because your brand is profitable and sitting on cash doesn’t mean you’re set. It may actually mean you’re flying blind without strategic guidance.
-Wealth doesn’t just come from exits. It’s about using your brand’s cash to buy assets—stocks, real estate, maybe even other brands.
-Profit is only powerful when it’s used well. A CFO helps you determine how much to reinvest in the business vs. how much to pull out to diversify your wealth.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Free to Grow CFO - https://freetogrowcfo.com/
The Free to Grow CFO Podcast
Episode Summary
In this mini episode of the Free to Grow CFO podcast, Jon Blair discusses the concept of LTV (Lifetime Value) in the context of DTC brands, emphasizing its importance in measuring customer value over time. He highlights common misconceptions about LTV, particularly the confusion between LTV and LTR (Lifetime Revenue), and stresses the need to measure LTV in margin dollars rather than revenue. Jon also explains the significance of time-bound LTV and its role in assessing profitability against customer acquisition costs (CAC).
Key Takeaways:
-LTV is the cumulative value that a customer represents to your brand over time.
-LTV should be measured in margin dollars, not total revenue.
-LTV must be time-bound, expressed in specific time frames.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Free to Grow CFO - https://freetogrowcfo.com/
Transcript
00:00 Understanding LTV: Definition and Importance
03:14 Measuring LTV: Common Mistakes and Correct Approaches
04:59 Using LTV for Business Decisions: Profitability Assessment
