How to Know What a New Customer Is Worth Over Time | #663

We're all racing to acquire new customers. But how do you know what a new customer is actually worth, not just on the first purchase, but over time?

This Playbook is anchored by Rob Ward, who bootstrapped Quad Lock to a $500 million exit and built a framework for exactly this: the three gates for new customer acquisition. The best part is that not every gate has to be green.

In this playbook, we cover three things ecommerce operators need to know about what a new customer is worth:

• Split new customers from returning before you calculate anything, using nCAC and new-customer AOV
• Make payback something you observe with a real cohort, not something you hope for
• Find the customers worth having, then use them as the seed to go find more

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