LTV
3 statements across 3 episodes · 2 bullish · 1 bearish · 3 people on the record · first statement Oct 9, 2022 by Dan Hockenmaier · across every show →
Everything said about LTV, oldest first
Oct 9, 2022 bullish
Hockenmaier: Later marketplace cohorts often see lower CAC and higher LTV
“So typically, as you acquire more and more customers, you're acquiring the marginally good fit customer over time. And your CACs go up, your LTVs go down, it gets harder and harder. Marketplace actually the inverse, like the supply of liquidity is improving, t…”
Jun 25, 2023 negative
Batchu: Relying on LTV-to-CAC ratios risks destroying value via faulty churn assumptions
“I think the challenge with LTV to CAC, especially for a lot of, even ramp, right? It's only four years old is it's really hard to predict LTV. It's like a DCF. It's extremely assumption laden and it, and it's hard to know. You know, what the defiant value will…”
Nov 7, 2024 positive
Reducing Top-of-Funnel Friction Drops CAC Faster Than It Hurts LTV
“And a lot of teams get very nervous. Their retention rate went down. Their LTV went down. Oh my goodness. This is going to affect our ability to pay. No, your CAC also went down by probably more. And so now you have the ability to likely spend more. And you ha…”