Acquiring a new customer costs money - it's your initial investment in the asset (cash outflow).
Your average customer has a lifetime value made up of their individual future contributions to your profit - the return on your asset (cash inflows)
The sum of the future contributions has to be greater than the initial investment for the relationship to be profitable*.
* Please note that for simplicity's sake inflation and the time value of money are ignored here.
Supported by the European Union. Project co-financed by the ERDF 
