How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)
ConversionXL
OCTOBER 8, 2021
Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. Although investors bet on the future, they can’t ignore the present health of the business. It’s important to be aware of which churn you’re using in your LTV calculation, as they might give different answers.
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