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Churn/ Customer Retention

Hi

What do I need to learn for case math in terms of:

- Churn/ Customer Retention (e.g. SaaS company)

- Operations math

Hi

What do I need to learn for case math in terms of:

- Churn/ Customer Retention (e.g. SaaS company)

- Operations math

1 Antwort

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Hi,

Your LTV = Profit from the client / churn

You churn should be bigger than CAC. Depends on the industry, but I would say at least 3x CAC

Key ops topics: Capacity and utilization, Cycle time, Throughput time, Little's Law, Bottlenecks, Buffer, Parallel processes.

Best

Hi,

Your LTV = Profit from the client / churn

You churn should be bigger than CAC. Depends on the industry, but I would say at least 3x CAC

Key ops topics: Capacity and utilization, Cycle time, Throughput time, Little's Law, Bottlenecks, Buffer, Parallel processes.

Best

Why should churn be higher than CAC? That does not make sense... — Anonym A am 17. Feb 2020