SaaStr 680: The Most Important SaaS Metrics of 2023 with monday.com Co-Founders and SaaStr Founder Jason Lemkin
The Official SaaStr Podcast: SaaS | Founders | Investors
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The Importance of CAC in Scaling Up Companies
Small startups and scale-up companies should use customer acquisition cost (CAC) and customer lifetime value (CLTV) metrics differently./nCAC and CLTV are not standardized metrics and can be manipulated in various ways./nEven with low CAC and high CLTV, a company can still go bankrupt if not managed properly./nThe inclusion of free and additional customers in CAC calculations is important for accurate measurement in the SaaS industry./nConsistent measurement of metrics is necessary, but it should be balanced with an understanding of the company's financial situation.
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