How to Calculate CAC & LTV | The 2 Key Metrics for Growth

Timestamps: 0:00 - Introduction 0:48 - Understanding CAC 1:48 - Calculating CAC 3:26 - Time Period for CAC 4:25 - Cohort Analysis 5:48 - Improving CAC 6:36 - Understanding LTV 6:58 - Calculating LTV 11:03 - Methods to Increase LTV 12:26 - Ratio of LTV to CAC 14:07 - Common Issues with CAC and LTV 19:30 - Considerations and Notes In this video, I'll explain the importance of two key metrics, CAC (Cost of Customer Acquisition) and LTV (Lifetime Value of a Customer), for businesses looking to scale and analyze their growth. The video provides a deep dive into calculating CAC and LTV, the common issues and miscalculations startups and businesses face, and methods to improve these metrics. We will discuss the significance of understanding the ratio between LTV and CAC, and share insights on refining targeting, increasing retention, and analyzing channel profitability. This video is a valuable resource for entrepreneurs and marketers looking to drive business growth by better understanding CAC and LTV.