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CEO, HostAnalytics,  a leader in cloud-based enterprise performance management (EPM).   Previously Dave was SVP/GM of Service Cloud at Salesforce ,  CEO at MarkLogic and CMO at Business Objects for nearly a decade as it grew from $30M to over $1B.  See Dave's disclaimers at Kellblog.

3 responses to “The Ultimate SaaS Metric: The Customer Lifetime Value to Customer Acquisition Cost Ratio (LTV/CAC)”

  1. If you had to choose only 1 metric, would this ...

    […] I’m a big fan of software-as-a-service (SaaS) metrics. I’ve authored very deep posts on SaaS renewals rates and customer acquisition costs.  […]

  2. Musings of a Dianasaur
  3. DT

    Great post. I’ve been a student of the typical SaaS metrics for some time now. Particularly, my interest is in the varying models for LTV. What LTV model(s) do you find to be most effective in practice? Do you project LTV (and therefore CAC) variance based on changes in GM% and churn rate?