How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)
ConversionXL
OCTOBER 8, 2021
In most cases, it includes: Salaries of sales and marketing teams Advertising spend on acquiring new customers (Search/Display Ads, Social Ads, Sponsorship, etc.) Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. So, what is an acceptable churn rate?
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