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112 - Corey Haines Opens The Saas Marketing Playbook

The Marketing Millennials

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SaaS Marketing - Is LTV to CAC a BS?

LTV is supposed to be the cumulative earnings or cumulative revenue per customer. But what happens when you get something like SaaS where it's a subscription and that number grows every single month? So if you base your whole acquisition model off of this idea of lifetime value, you're going to find that actually your customer acquisition costs are not as profitable as you might think. LTV2CAC is really about how long does it take for a customer to become profitable after you've spent the money to acquire that customer on a per customer basis.

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