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How to Chart a Path to Profitability for Investors

Key SaaS Metrics for Investors: Customer Acquisition Cost (CAC) & Customer Lifetime Value (CLTV)

Profitability is not the be-all and end-all for SaaS startups. Still, investors will want to see a path to profitability and there are two growth metrics you should focus on. Here's how you chart that path.

How to Calculate CLTV to CAC Ratio for Your SaaS Business

How effective is your sales and marketing? How much does it cost to bring in new customers — and how does that compare to what you expect to earn from customers over their lifetime? Looking at your CLTV/CAC Ratio can yield insights into how efficiently your company is spending its sales, marketing, and customer retention dollars and, in the long term, how valuable your company is.

How to Calculate Customer Lifetime Value (CLTV) for Your SaaS Business

The customer lifetime value (CLTV) for your SaaS business is a key metric to understand how effective are your sales and marketing efforts.