V2C (Value to Customer) vs. LTV (Customer Lifetime Value)

The term customer value is ambiguous. It is often used to mean how much value the vendor is going to extract from the customer, or how much will the customer pay. That is one way to think of customer value. But the other side of the coin is more important. That is how much value is the vendor providing to the customer. This is the Value to Customer (V2C).

Providing value, V2C, has to come first. If you are not providing value to you should have no expectation of extracting from.

V2C > LTV

If that is not true, customers will churn.