CAC and LTV

Our acronyms tell our story.

For marketing, CAC means cost of acquiring a customer, while LTV is the life-time value of the customer.

One is an endless chase, the other is an illusion. (Care to guess which one is which?)

If we spend on a constant churn of names, we'll be mired in the hamster wheel of volume. This is CAC.

If we confine yourself to the hopes and dreams of potential capacity over the next 5, 10 or 15 years, we'll delude ourselves into ignoring the enthusiasm of new customers. This is LTV.

It's more than a balance - it's more a concern that if we have one and not the other, we're in trouble. If we have both, it's our job to become good at both, not just what we're successful with today.

CAC and LTV together give us a future.