Determine your SaaS co's minimum LTV:CAC ratio needed for profitability by reviewing your OpEx composition. Hint: 3x doesn't always mark the spot.
What should your LTV:CAC ratio be?
Tag: CAC
Determining LTV:CAC in the age of land & expand
Exec summary B2B SaaS companies are increasingly deploying land & expand distribution strategies. While land & expand works well for customer acquisition, it can create headache for one of SaaS’s favorite metrics. The original LTV:CAC formula doesn’t hold up for companies with land & expand motions. And the alternative method suggested of using a discounted… Continue reading Determining LTV:CAC in the age of land & expand
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