"ForEntrepreneurs" featured an article by Jared Sleeper of Matrix Partners discussing when is the right time for a start up to calculate Long Term Value (LTV) vs Customer Acquisition Cost (CAC). and how to use these metrics. Companies should wait until they have a repeatable and scalable process to rely on this calculation but can also glean:
- Which type of customer is worth acquiring
- How much to spend to acquire a customer
- How many sales reps should you hire