CAC (Cost per acquisition)
How much does it cost you to aquire each user, on average?
Churn
Customer churn is the percentage of customers that stopped using your company’s product or service during a specified time frame (e.g. a month, a quarter, etc).
Churn rate = number of customers you lost during the time period / number of customers you had at the beginning
Conversion Rate
The percentage of free users who have upgraded to a premium plan
LTV (Lifetime Value)
The total value of a paying user, on average.
Some rules of thumb:
- a SaaS standard is that LTV should always be greater than 3x CAC
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