

Ultimate Guide to SaaS Customer Lifetime Value (LTV) - nickfzx
http://www.slideshare.net/chartmogul/the-ultimate-guide-to-saas-ltv

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cllaudiu
I find the adjustment of LTV by 0.75 to be a smart shortcut. You could
probably spend hours and hours of calculating just to reach an average of
0.8342 or something, though the exact number wouldn't make much difference to
your CAC spending.

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nickfzx
One important thing LTV misses is payback period. E.g. due to very low churn
your LTV could potentially be huge but the value would take many years to
realise, depending on your cash reserves CAC spending well below LTV still may
not be economical if it takes too long to realise the ROI.

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cllaudiu
Agree with you here. For my previous start-up I used to calculate LTV only
based on people that churned. Knowing your LTV is much higher can only be
great, at least as long as you can work with a CAC/LTV value.

