MBA1998 Guest Teacher – Paul Orlando – How to Understand Lifetime Value (LTV) and Customer Acquisition Cost (CAC)
What’s a customer worth — exactly? Literally! Each customer is worth a specific dollar amount to your business, over the entire time they pay for your products or services. And of course, each customer costs your business a specific dollar amount to acquire.
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Show Notes
What’s a customer worth — exactly?
Literally! Each customer is worth a specific dollar amount to your business, over the entire time they pay for your products or services. And of course, each customer costs your business a specific dollar amount to acquire.
In other words, your overall success is the difference between your customers’ Lifetime Value (LTV) and their Customer Acquisition Cost (CAC)
To dive deeper into this crucial equation, we’re happy to welcome Paul Orlando, a business growth expert who’s helped startups around the world hit their target numbers. Today, Paul breaks down LTV and CAC, and how to calculate yours.
Together, LTV and CAC may be the two most important metrics you can track over the life of your business. Get that calculator out and Click Play!
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