Taking consumer lifetime value into account allows performance marketers to manage more volume at a higher cost per acquisition (CPA) or lower return on investment (ROI). If $1 of revenue at the time of conversion leads to an additional $1 of revenue ($2 total) down the road then breakeven for marketing is 0.5 ROI or a CPA equal to 50% of the average order value (AOV) and anything better is money in the bank. However, simply multiplying the conversion value by the perceived lifetime value (LTV) can provide convoluted and misleading metrics because we cannot operate under the assumption that all conversions come from new users. If you’ve ever worked for, with, or been funded by a venture capitalist, then you’ve probably been…