SaaS METRIC OF THE WEEK
LTV/CAC. The ratio of Lifetime customer value versus customer acquisition cost is one of the primary metrics that companies use to measure efficiency (3 is the magic number) - but this article is interesting as it gives 4 reasons (from an advertising lens) as to why LTV/CAC is not a great metric for early startups (and what to use instead). HINT: It’s payback period…...