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CAC-LTV-Ratio: Difference between revisions
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(Created page with "The CAC Ratio looks at how much Sales & Marketing expense you spend to buy $1 of new ARR. It’s the inverse of the Magic Number, which measures how much new ARR is created for each $1 of Sales & Marketing expenses. == Definition == CAC Ratio = last period’s Sales & Marketing expense / this period’s new ARR <math> CAC(\Delta t)=\frac{S_x+M_x}ARR </math> == Details == ;Sales Expenses (S<sub>x</sub>) include * the wages of all of the personnel in Sales, in...") |
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<math> | <math> | ||
CAC(\Delta t)=\frac{S_x+M_x}ARR | CAC(\Delta t)=\frac{S_x+M_x}{ARR} | ||
</math> | </math> | ||