Bird: Fast-Growing Startups Should Focus on CAC Payback Over LTV
Aaron Bird · 875 SaaS: Bizable Passes $1m MRR in Attribution Wars · Dec 16, 2017 · at 14:33
Bizible co-founder and CEO Aaron Bird explains why calculating multi-year lifetime value is misleading for early-stage software companies.
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“I think people, the LTV number is not a, I don't think it's a good number to focus on. We calculate it and it's in our metrics and everything, but it's I think, you know, again, you know, you have 95% logo retention or dollar retention. You know, that customer is going to stay with you for, I, you know, I don't know, it's something like over 10 years at a startup where you're really focused on, you're growing really fast and you're thinking about the next two years. I think it's better to focus on, on CAC and CAC payback and not get too hung up on a great LTV to CAC ratio”
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