video1.0<iframe src="https://www.loom.com/embed/4bfc1035a80e4adf91a7f2c8214098a2" frameborder="0" width="1920" height="1440" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>14401920Loomhttps://www.loom.com14401920https://cdn.loom.com/sessions/thumbnails/4bfc1035a80e4adf91a7f2c8214098a2-ef08512b92f8567b-full.jpg2234.132In this video, I explain the crucial metrics for calculating Customer Acquisition Cost (CAC) and maximizing revenue growth. I delve into key concepts like ARPA, churn, and Lifetime Value (LTV), providing formulas and strategies for sustainable scaling. Viewers are encouraged to optimize outbound systems and understand the balance between growth and profitability to achieve long-term success. I talk about the most important SaaS metrics and provides a template to calculate these metrics in our standardized format. CAC - Customer Acquisition Cost ARPA - Average Revenue Per Account (aka ACV) Account Churn - Percentage of accounts who cancel monthly Lifespan - Average months a client stays LTV - Estimated lifetime revenue from a client Payback Months - Number of months of revenue to recoup S&M spend LTV:CAC Ratio - Target 6:1 for most SaaS firms We also break down how to calculate your Target CAC and Target Payback months — so that you know in advance of spending on outbound prospecting and paid advertising what your results need to be to allow for sustainable and repeatable revenue growth. You can also get these figures calculated for you by syncing up your billing or accounting system onto ProfitWell or SaaSGrid (free) or on a free trial of ChartMogul or Baremetrics. Just load in the data and wait a few hours for it to sync. Stripe also can provide a good enough LTV estimate if you bill only via cards. Learn more and join our community at www.saasrise.com