As a Founders how it is important for you to measure CAC and LTV
Shared by murmurcars.com · 5d ago · 2 comments

My question is: as a Founder how do you measure your CAC and LTV.there are a lot of tools which give you a lot of data and it is up to you to consider which data to measure and build your marketing strategy.

Which tools do you use to measure CAC, LTV and show you the right data set which you need to monitor based on your startup stage?

kendsouza · 4d ago

Unless you are paying someone to acquire users e.g paid ads, there would be no CAC.

Over the last 4 weeks RunPTO got 8 new paying subscribers. But they were all organic.

If I start spending on paid ads/marketing/sales..I will just divide the total amount spent by the number of paying subscribers acquired to arrive at the CAC..it should be that simple for me..no tools needed.

As for LTV, I look at it from my product's usage..if the subscriber uses more of the RunPTO features like Financials, Directory etc, it becomes more difficult for them to switch next year..as they have invested in the product with the data. e.g an organization does not change financial systems year over year.

tyanbrooker · 5d ago

Yes, I think it is very much based on the type of business that you are trying to make most SaaS companies use arr as a measure but for a business like Twitter or Facebook, this would have been useless to start with so it is very much based on your business model.

In terms of tools I do not know for my own project I am using Google analytics to measure users it is pretty primitive but it is free. Hopefully, someone else can help you if there is a particular tool or metric you are looking to measure.

I hope this helps

All the best
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