The difference between digital marketing and content marketing

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Here, we will introduce two methods commonly used in calculating unit economics: "subscription type" and "spot type." LTV for subscription-based businesses For subscription-based businesses such as SaaS and regular mail order services, LTV is calculated using the following formula. It places emphasis on regular revenue such as monthly fees and continuity (cancellation rate). LTV formula for subscription-based businesses LTV＝ Monthly gross profit per customer x Average number of months a customer continues using the service For example, if the monthly gross profit per customer is 5,000 yen and the average customer retention period is 12 months, the calculation would be as follows: Example of LTV calculation for subscription-based business 5,000 yen x 12 months = LTV60,000 yen LTV for spot business For businesses such as retail where customers make purchases on an irregular basis,It is calculated based on the profit per transaction and repeatability .


The formula is as follows: LTV calculation formula belgium telegram data for spot business LTV＝ Average customer spending × Average gross profit margin × Average number of repeat customers For example, if the average customer price per transaction is 5,000 yen, the average gross profit margin is 30%, and the average number of repeat customers is 4 times, the calculation would be as follows: LTV calculation example for spot business 5,000 yen x 30% x 4 times = LTV6,000 yen How is "CAC" calculated and what is its purpose? Next, we will explain how to calculate CAC (customer acquisition cost) and what it is used for.


What is CAC? CAC (Customer Acquisition Cost) is the total cost to acquire one customer. It includes all costs related to customer acquisition, such as promotion and advertising expenses, sales expenses, and employee salaries. The lower the CAC, the lower the cost of acquiring customers, which means it is considered healthy. In addition, there is another indicator similar to CAC called Cost Per Acquisition (CPA). Although the two terms have similar meanings, there are differences in the situations in which they are used and the nuances they have.