Startups face several key metrics that must be constantly optimized for their success--namely lifetime value (LTV), customer acquisition cost (CAC), and growth rate.
Although they vary by industry, each indicates a different area of good financial health.
LTV measures the total value that a customer brings to a business over their lifetime
CAC is a calculation of how much it costs to acquire each new customer
Growth rate indicates the size and rate of the company’s growth over a period of time.
By regularly tracking, analyzing and optimizing these metrics, startups can identify where to double down on their investments and ensure they’re efficiently scaling their business.
What about you?