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Technology executive, angel investor, independent director, adviser, and blogger. Formerly CEO of Host Analytics and MarkLogic, CMO of Business Objects and Versant, and independent director of Aster Data, Granular. Currently independent director of Alation and Nuxeo

3 responses to “The Ultimate SaaS Metric: The Customer Lifetime Value to Customer Acquisition Cost Ratio (LTV/CAC)”

  1. If you had to choose only 1 metric, would this ...

    […] I’m a big fan of software-as-a-service (SaaS) metrics. I’ve authored very deep posts on SaaS renewals rates and customer acquisition costs.  […]

  2. Musings of a Dianasaur
  3. DT

    Great post. I’ve been a student of the typical SaaS metrics for some time now. Particularly, my interest is in the varying models for LTV. What LTV model(s) do you find to be most effective in practice? Do you project LTV (and therefore CAC) variance based on changes in GM% and churn rate?