Business Math Flashcards
1
Q
LTV simple
A
profit contribution x time being customer
2
Q
LTV to CAC
A
cost of acquisition relative to lifetime value
3
Q
CAC
A
Cost to Acquire a Customer = Sales and Marketing Costs / New Customers Won
4
Q
LTV Full
A
Lifetime Value = Gross Margin % X ( 1 / Monthly Churn ) X Avg. Monthly Subscription Revenue per Customer
5
Q
Customer Churn
A
Customer Churn Rate = (Customers beginning of month – Customers end of month) / Customers beginning of month
6
Q
Revenue Churn
A
[(MRR beginning of month – MRR end of month) – MRR in upgrades during month] / MRR beginning of month
7
Q
ROI
A
Gain/Investment (x100)
