Customer Acquisition Cost and Lifetime Value

Every business needs to know how much it costs to acquire new customers and how much profit those customers will generate. In this course we show you how to measure these metrics so that you can make more optimal decisions about how you spend your sales and marketing budget and how you monetize your customers.

Meet Your Instructor

Nic Barnhart

Cofounder & CPO, Pareto Labs
Finance/Analytics, ZipRecruiter

Curriculum

01

Introduction

Get an overview of customer acquisition cost (CAC) and lifetime value (LTV) and how they can work together to inform business decisions.

02

Customer Acquisition Cost

Learn the formula to calculate your CAC and how to identify trends over time or by marketing channel.

03

Customer Lifetime Value

Learn the formula to calculate how much money you can expect to make from your customers over time and how the calculation is different based on your revenue model.

04

LTV Demonstrated

Time to practice! Reinforce your knowledge of lifetime value through the example of a lemonade stand.

05

The LTV-CAC Ratio

Put lifetime value and customer acquisition cost together to understand your core business economics and whether you are on a path to sustainable growth.

What people are saying about this course…

"Very detailed explanation and super insightful."
Eukky M Anaheim, CA
"You did well explaining and demonstrating the concepts."
Gani S CMO
"Very useful, easy to understand info."
Eduardo C Operations Manager