How To Calculate & Increase Customer Lifetime Value
ConversionXL
MARCH 5, 2014
It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. Using Hubspot’s example, let’s say you spend $1,000 in PPC, which nets you 500 visitors. At least you’ll have something to benchmark so you can reduce your churn rate later. image source.
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