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
Feel free to comment if you can add help to this page or point out issues and solutions you have found. I do not provide support on this site, if you need help with a problem head over to stack overflow.

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