Summary
Lifetime value (LTV), customer acquisition costs (CAC) and LTV:CAC calculations provide business viability measures and illuminate sales and marketing efficiency. Choose the best LTV calculation method based on the company’s data and product lifecycle. Calculating LTV, CAC and LTV:CAC requires collaboration and alignment between finance, sales leadership, marketing, and sales or revenue operations. In this report, we describe different methodologies for calculating LTV, a step-by-step approach to calculating CAC, and how to apply the LTV:CAC ratio to a business, product, or territory.
Log in to continue reading
Client log in
Welcome back. Log in to your account to continue reading this research.
Become a client
Become a client today for these benefits:
- Stay ahead of changing market and customer dynamics with the latest insights.
- Partner with expert analysts to make progress on your top initiatives.
- Get answers from trusted research using Izola, Forrester's genAI tool.
Purchase this report
This report is available for individual purchase ($1495).