How To Build a Process for Modeling CAC and LTV

When it comes to SaaS metrics, there’s no shortage of people telling you new ways to track and measure your business. With such a wide pool of methods and calculations, inaccuracies are bound to happen.

Ezra Fishman of Wistia took part in a SaaSFest panel last December to share how he and the Wistia team approach modeling CAC (customer acquisition cost) andLTV (lifetime value) and explained that when you first start modeling and trying to predict different metrics, you want to start as simple as possible. Only as you gain further understanding of the metric within your business model, should you add complexity to the calculation. Before we elaborate more on his approach, let’s review two fundamental SaaS calculations: customer acquisition cost and lifetime value…

How To Build a Process for Modeling CAC and LTV

CopyRanger

Rick Duris is CopyRanger.

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