QUESTIONS

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 |

a) To predict how much business volume you will need to expand and grow your startup.
b) To define how much effort will be needed to maintain X active customers.
c) To define which tests are necessary for your solution.
d) To pivot if this value is far below expectations.
e) To define which features should be prioritized in the roadmap.

The three reasons why Lifetime Value (LTV) is a key concept are:

a) To predict how much business volume you will need to expand and grow your startup: LTV helps you estimate the long-term revenue potential of each customer, allowing you to forecast how much business you'll need to acquire and retain to achieve growth goals.

b) To define how much effort will be needed to maintain X active customers: Understanding LTV helps you determine how much effort and resources you should allocate to customer retention efforts. It helps in creating strategies to keep customers engaged and satisfied over their lifetime.

d) To pivot if this value is far below expectations: If the LTV falls significantly below your expectations, it may indicate that your business model or product-market fit needs adjustment. A low LTV could prompt you to pivot, refine your strategy, or seek out new customer segments or revenue streams.

Explanation of the concepts underlying incorrect answers:

c) To define which tests are necessary for your solution: LTV primarily focuses on customer value over time, and while it can inform decisions about tests and experiments, it is not directly tied to defining specific tests for your solution. Tests and experiments are typically related to product development, marketing, and user experience, and they may be influenced by LTV but are not determined solely by it.

e) To define which features should be prioritized in the roadmap: Feature prioritization is often based on factors like customer needs, market demand, and strategic goals. While LTV can provide insights into which customers are most valuable, it may not directly dictate which features should be prioritized. Feature prioritization should consider a broader range of factors, including customer feedback, competitive analysis, and product strategy.

QUESTIONS

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 |