On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss Customer Lifetime Value, and the different input variables required to calculate this compound, multi-variable metric.
The Metrics brothers discuss the following nuances of calculating Customer Lifetime Value
- The basics - CLTV or LTV
- Revenue or Gross Profit
- Which number to use for churn in the formula (GRR, Logo Churn, all ARR or only available to renew ARR)
- Which number to use for the Average Revenue Per Account (ARPA) - new customers only or all customers
If you love the nuances and details of SaaS Metrics - this is a thought provoking episode that highlights the important of gaining alignment of the CLTV and CAC metrics in your B2B SaaS company
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SaaS Talk™ with the Metrics Brothers