Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

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

26 Aug 2023 · 1 min

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0:45

Short excerpt from a YouTube interview about LTV and CAC. The speaker (a founder/leader) emphasizes knowing the lifetime value (LTV) of a typical small-business customer, not spending more to acquire a customer than that LTV, and minimizing the time to recoup acquisition costs (shortening payback period). The speaker recommends monitoring these metrics regularly (e.g., quarterly) while bootstrapping.

Chapters

How did you think about that? What I really cared about most was here's some acronyms to ltv, ltv, and cat. 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 it is. Short. Short a 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.