Payback period vs LTV: what marketers should compare
Payback period and LTV answer different acquisition questions. Learn how to use both when reviewing paid growth.
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Payback period and LTV answer different acquisition questions. Learn how to use both when reviewing paid growth.
Learn the CAC payback period formula, see a simple example, and understand how payback period helps judge acquisition quality.
MER and ROAS both compare revenue with spend, but they answer different reporting questions. Learn how to use both.
AOV and LTV measure different parts of customer value. Learn how average order value affects lifetime value and acquisition decisions.
LTV and CAC work together when judging growth quality. Learn what each metric measures and how to use the LTV:CAC ratio.
Learn a simple LTV formula, see an ecommerce example, and understand when to use revenue LTV or profit-based LTV.
Learn the CPA formula, see a simple example, and understand how cost per acquisition fits into paid campaign reporting.
CPA and CAC both measure acquisition cost, but they are not always the same. Learn how marketers should compare them.