top of page

Customer Lifetime Value - It's not that simple

with the Metrics Brothers

On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss Customer Lifetime Value, and the different input variables required to calculate this compound, multi-variable metric.

The Metrics brothers discuss the following nuances of calculating Customer Lifetime Value

  • The basics - CLTV or LTV

  • Revenue or Gross Profit

  • Which number to use for churn in the formula (GRR, Logo Churn, all ARR or only available to renew ARR)

  • Which number to use for the Average Revenue Per Account (ARPA) - new customers only or all customers

If you love the nuances and details of SaaS Metrics - this is a thought provoking episode that highlights the important of gaining alignment of the CLTV and CAC metrics in your B2B SaaS company

bottom of page