In other words, it is a customer acquired without incurring costs such as advertising. On the other hand, "Paid CAC" refers to the costs incurred in measures to acquire customers, such as TV commercials, web advertising, participating in or hosting events, etc. The sum of Organic CAC and Paid CAC is called "Blended CAC," and the term CAC used in everyday life often refers to this Blended CAC. Three things you can do with unit economics (LTV/CAC ratio) Here are three specific examples of what you can do by using unit economics and LTV/CAC metrics.
Three things you can do with unit belgium telegram data economics (LTV/CAC ratio) Identify the profit generating point Predict future cash flows and growth potential Choose the best marketing method 1. Understand the points where profits are generated Calculating unit economics will give you a clear picture of when your CAC will be recovered and you will see a profit (break-even point). For example, let's say a subscription service has an LTV of 100,000 yen, a CAC of 50,000 yen, and an average retention period of 24 months.
In this case, one customer will generate a profit of 100,000 yen over 24 months, so it is possible to calculate the breakeven point as follows: Example of profit generation point calculation LTV of 100,000 yen ÷ retention period of 24 months = monthly profit per customer is approximately 4,200 yen CAC 50,000 yen ÷ monthly profit per customer 4,200 yen = about 12 months In other words, the CAC can be recovered after 12 months of continued use, and the longer the contract is continued, the more profits will be generated.