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learn.howToCalculate

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Compares lifetime value to customer acquisition cost ratio to assess business unit profitability and sustainability. Critical SaaS metric.

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  1. 1Calculate CLV (lifetime profit per customer)
  2. 2Calculate CAC (total acquisition cost per customer)
  3. 3Divide: CLV ÷ CAC
  4. 4Compare: 3:1 acceptable, 5:1 excellent

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
CLV $2500, CAC $100
ଫଳ
25:1 ratio

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

  • Using gross profit instead of net profit for CLV
  • Including one-time setup costs in recurring revenue CLV

ବାରମ୍ବାର ଜିଜ୍ଞାସା

Why is this ratio important?

Shows how many dollars of value each acquisition dollar generates; indicator of sustainable growth.

How can I improve the ratio?

Increase CLV through retention and upsell; decrease CAC through channel optimization and referrals.

ସେଟିଂ