CAC payback period

“VCs in general kind of like all-in-one metrics because they're trying to make an investment decision. I always feel like operators don't love these metrics as much because if it's too high, I don't know which side of it is broken, right? If my CAC payback peri…”

“The two most important ones are CAC payback period in months, and three year LTV to CAC.”

“If you're targeting SMBs, you will likely have higher churn, and in these cases you should aim for something closer to 12 months or less, but obviously it depends, so these are just some, ah, some rules of thumb.”

“As a rule of thumb, if you're selling to enterprises, you have a long customer lifetime, you might have a net dollar retention rate or in the hour of a hundred percent or maybe even more. 15 to 18 months of payback is probably okay, probably quite good.”

“There's one metric that I've come to really deeply appreciate because it's a single metric that can reflect Market demand and product market fit, how well our go-to-market engine is executing, and the product, the quality of our product. And that is the CAC pa…”