Unit Economics: CLTV, CAC and cohorts

, by Erik Byrenius

How much is a customer worth? How much does it cost to acquire customer?

If you can’t answer these basic questions, it’s hard to know if your business is sustainable or not. Your unit economics analysis will help you answer these questions. In this blog post, I will guide you through how I use unit economics to better understand a business. We’ll take a look at customer lifetime value (CLTV), retention data and customer acquisition cost (CAC), as well as discuss how to use them.

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