Unpacking the Deep Diagnostic Value of LTV/CAC for SaaS Startups
Tom Tunguz
JUNE 2, 2015
In a recent podcast , Ron Gill, the CFO of Netsuite - a $7B+ market cap company with about $600M in 2014 revenue, which provides ERP software to mid-market companies - articulated the importance of the Lifetime Value / Cost of Customer Acquisition (LTV/CAC) ratio for his company. LTV/CAC is often used to justify marketing and sales investment to acquire customers.
Let's personalize your content