HomeResearch Articles Calculating Lifetime Value (LTV) and Customer Acquisition Costs (CAC)

Calculating Lifetime Value (LTV) and Customer Acquisition Costs (CAC)

  • Lifetime value (LTV), customer acquisition costs (CAC) and LTV:CAC calculations provide business viability measures and illuminate sales and marketing efficiency
  • Choose the best LTV calculation method on the basis of the company’s data and product lifecycle
  • Calculating LTV, CAC and LTV:CAC requires collaboration and alignment between finance, sales leadership, marketing, and sales or revenue operations
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