Analyzing Relationship Between CAV, LTV, and Their Ratio
The CAC versus LTV trend graph helps you see how much you spend to acquire customers and the value those customers bring over time.
This interactive graph displays a trend line for CAC and LTV ratio, and bar charts for customer acquisition cost CAC and LTV.
You can select the reporting period by month, quarter, or year to focus on specific trends.
CAC and LTV Comparison Chart Key Components
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Data sources - Subscriptions, contracts, and billing data from NetSuite.
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Visualizations - By tracking these trends, you can spot if your LTV is growing faster than your CAC.
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The LTV trend graph shows how customer value changes across your chosen period.
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A strong LTV and CAC ratio signals that your business is spending efficiently to gain valuable customers.
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Bar charts for CAC and LTV let you compare spending and value side by side.
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Filters - Only the MRR metric and subsidiary filter are applicable.
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Reporting periods - Choose the reporting period and set start and end dates for your analysis.
The graph updates based on your selections and access permissions.
Key Terms and Definitions
The following table lists the key terms and their definitions.
|
Term |
Definition |
|---|---|
|
MRR |
The total predictable revenue generated from active subscriptions each month. |
|
ARR |
The total predictable revenue generated from active subscriptions each year. |
|
Subsidiary |
A distinct business unit or legal entity within the organization. |
|
Period |
Time interval - monthly, quarterly, or yearly |
To view the CAC and LTV comparison chart:
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Go to Subscription Metrics > Unit Economics > View.
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From the Metric filter, select MRR.
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Select your reporting period (month, quarter, or year).
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Set the start and end dates for your analysis.
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Review the trend line and bar charts for key insights.
For deeper analysis, explore other dashboard tools and reports.