LTV/CAC - What Does The LTV:CAC Ratio Mean For Your SaaS?
“What is the true value of my customers?” You can measure this value using the LTV:CAC ratio, or the Customer Lifetime Value to Customer Acquisition Cost ratio. If you’re running a SaaS business, this might be a common calculation you make. After all, it’s the value you derive from customers that keep the light on. The LTV/CAC metric measures if the revenue your customers generate for your business justifies the effort you put into...
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