SaaS profitability metrics

How to Optimize CAC vs. LTV in SaaS

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Introduction The relationship between Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV) is the bedrock of SaaS profitability, scalability, and investment-readiness. Maximizing LTV while keeping CAC in check ensures sustainable growth, healthy margins, and the confidence of founders, teams, and investors. Effective optimization of this ratio powers smarter spending, greater retention, and stronger business … Read more

How to Calculate SaaS Customer Lifetime Value (CLV)

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Introduction Customer Lifetime Value (CLV, often called LTV in SaaS) is a core metric that determines the long-term revenue generated by a single customer. It drives decisions in pricing, marketing, retention, and growth. Accurately calculating CLV helps founders invest strategically, maximize profit, and forecast financial performance. 1. Understanding CLV in SaaS CLV estimates the total … Read more