How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)
ConversionXL
OCTOBER 8, 2021
A popular way is to include the cost of re-engagement campaigns in the acquisition cost. Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. It’s important to be aware of which churn you’re using in your LTV calculation, as they might give different answers.
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