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. For example, HubSpot Academy wanted to increase its sign-up rate. Most businesses track it on a monthly basis for both customers (Customer Churn Rate) and monthly recurring revenue (MRR Churn Rate).
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