How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)
ConversionXL
OCTOBER 8, 2021
Cost of software/hardware used in sales and marketing Agency, PR, or any third-party costs involved in sales and marketing. Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. Note that LTV/CAC ratios can fluctuate month on month due to specific investments.
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