What is the CLV of a merchant?

HINT: start with lifetime duration of merchant = 1/(1 - annual retention rate)

Calculation data includes

Monthly subscription value = $200/month

Average retention rate ~82%

50% gross margin

Other data includes:

Active merchants have about 13 x more consumers using the Cardagin app (285 active users for retained merchants vs. 21

active user for churned merchants)

Active merchants have about 21 x (1,210 versus 58) the number of transactions on the Cardagin app than churned merchants

.