Mastering LTV and CAC: Secrets to Boosting Business Success with Mailchimp's CEO

Name: Mastering LTV and CAC: Secrets to Boosting Business Success with Mailchimp's CEO
Uploaded: 2023-08-26T14:30:16+00:00
Duration: 45 s
Channel: Jason M. Lemkin
Description: Mailchimp's CEO explains why you should never spend more acquiring a customer than they'll generate in lifetime value. He stresses monitoring payback…

26 Aug 2023 · 1 min

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0:45

Mailchimp's CEO explains why you should never spend more acquiring a customer than they'll generate in lifetime value. He stresses monitoring payback period quarterly, especially for bootstrapped businesses, to ensure you're recouping acquisition costs fast enough.

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How did you think about that? What I really cared about most was, here's some acronyms, the LTV. LTV. And CAC. I cared about that. You did care about LTV. That was the only thing I cared about. I knew our lifetime value from a typical small business customers, I knew how much that was, and the trick was don't spend more than that. Yeah. I like it. Oh, and like the lifetime value, I knew how long it took me to get that, you know, and you try to shorten that, get that as short short of time as you can, recoup that cost ASAP. That was really all I cared about. I would watch for that like once a quarter. Gotcha. Thank you. Yep. Good luck on the bootstrapping. Hey man,