How much do you expect to earn per customer?
Our next sales KPI example refers to your customer lifetime value (CLV) which is important to track because the longer you keep having paying customers, the more you’ll make. To calculate this sales metric, you need to distract your CAC from the total amount of revenue which you expect to get from a new customer over the lifetime of the relationship. If your ARPU and CLV are rising, it signals that on average you are getting more revenue from each customer, for longer and that’s exactly what you should be aiming for. CLV enables you to understand how much you can allow for your CAC to still be profitable; a healthy ratio is key.
Performance Indicators
As long as customer lifetime value and average revenue per unit are growing, you’re in the green and your CAC are appropriate.
Relevant Showcase Dashboard
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