LTV/CAC Ratio is a SaaS KPI that measures the relationship between customer lifetime value and cost incurred to acquire that customer.
LTV is particularly relevant for SaaS (software as a service) businesses, where success depends on building lasting customer relationships. In a competitive marketplace, you’ll need to spend some money convincing customers to choose your product. For your business to be profitable, you need those...
The management teams of any business with a marketing budget should forecast and measure the cost of acquiring each user. This metric is especially important among startups that create mobile apps, SaaS, or consumer-facing websites. Without that information, it is nearly impossible to measure the...
While serving as COO of a SaaS company, I came up with a simple graphic that I used to educate the company’s employees about these all-important levers of success. In this blog post I use the graphic to explain the basics and then explore various “what if” scenarios. Hopefully you w...