Glossary

C
CACSaaS

Customer Acquisition Cost (CAC) is the average cost of acquiring one new paying customer over a given period. In other words, it’s the metric that answers the question: how much does each new customer cost you on average?

L
LTVSaaS

Lifetime Value (LTV) is a metric that reflects how much profit a company earns from a single customer over the entire period of their interaction with the brand (throughout their “lifetime” in your business).