Reference / Glossary / Measurement
Payback Period
The time it takes for a customer's cumulative contribution margin to repay the cost of acquiring them. Payback period matters more than LTV for a cash-constrained business, since a customer who is profitable over three years still has to be financed for the first year.
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Cite this entry:
Agency Echelon. "Payback Period." Agency Echelon Reference, reviewed September 2026. https://agencyechelon.com/reference/glossary/payback-period/