A deep dive on customer acquisition cost and payback period (with a template)
Iβm here for normalizing CAC payback over LTV:CAC π π
But my startup has an LTV:CAC of 100x. The CAC payback period doesnβt reflect my 1% annual churn rate.
My customers stick around forever, and they expand every year
I support this campaign slogan
How did you calculate what the COGS are for the given period if you don't yet know what is the payback period?
(in the example the yearly COGS for the new ARR are 3.75 not for but for the 12.8months they are 4)
Thanks
Thatβs a fake account. Guess I made it
Iβm here for normalizing CAC payback over LTV:CAC π π
But my startup has an LTV:CAC of 100x. The CAC payback period doesnβt reflect my 1% annual churn rate.
My customers stick around forever, and they expand every year
I support this campaign slogan
How did you calculate what the COGS are for the given period if you don't yet know what is the payback period?
(in the example the yearly COGS for the new ARR are 3.75 not for but for the 12.8months they are 4)
Thanks
Thatβs a fake account. Guess I made it