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1 Business, SO MANY Opinions!

Motley Fool Money

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Understanding Customer Metrics

This chapter explores the critical relationship between customer acquisition cost (CAC) and lifetime value (LTV) in subscription-based businesses. It emphasizes how these metrics inform marketing strategies and potential profitability, using examples like Peloton and Chewy to illustrate contrasting approaches to customer retention and growth. The discussion underscores the importance of transparency in financial reporting for investors assessing company health and performance.

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