SaaS Metrics 2.0 – Detailed Definitions
Over time, key metrics for calculating marketing returns have shifted to become more customer-centric. One key ratio for any marketing manager to be aware of is to know is customer lifetime value to customer acquisition cost (CLV:CAC). Often when calculating CLV:CAC one can get lost in the details of ARPA, bookings, and churn rate. At this point it can become difficult to know exactly how best to use these calculations and adjust for particular situations.
This article provides specific calculations necessary to apply to your own company. “SaaS Metrics 2.0" shows a more mathematical perspective of the ratios, including the solid facts you need about CLV and CAC. Click on the metrics for a deep insight using complex cases, and for the messier calculations that you may encounter in real marketing situations.