The trade-offs to the increased costs associated with boosting the circularity of the model are:
- On the one hand, the possibility of charging a higher price for the added value that circularity implies for some segments that are aware of it.
- On the other hand, it is possible to extend the useful life of the customer, derived from the extension of the life of the products and the new and extended revenue streams that may appear in the model.
LTV is a metric that shows how you can expect the evolution of both parallel indicators: your income sources from the customers and the investments/expenses incurred in developing your relationship with the customer.
