Analyzing Relationship Between CAC, 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. The interactive graph displays a trend line for the CAC to LTV ratio, and bar charts for CAC and LTV. Select the reporting period by month, quarter, or year to focus on specific trends.
CAC and LTV Comparison Chart Key Components
The CAC and LTV comparison chart includes the following key components:
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Data sources - Subscriptions, contracts, and billing data from NetSuite.
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Visualizations - Trend line for the CAC to LTV ratio, and bar charts for CAC and LTV. These visualizations let you compare spending and value side by side and see how customer value changes over time.
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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 the 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.