Visualizing the Interactions Between CAC, Churn and LTV
A Smart Bear: Startups and Marketing for Geeks
FEBRUARY 11, 2014
There are numerous online resources to help with the exact mathematical formulas for CAC, CAC payback, churn rate and LTV. The black horizontal line represents time and the unlabeled vertical access represents relative profit. Basic Concepts The concept of the graphic shown below is very simple.
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