Do You Have a Customer-Centric Business? Prove It

Gauging your business’s performance is not new–income statements and balance sheets are as old as capitalism after all. But today’s businesses have a few new measurement tools at their fingertips: CAC (Customer Acquisition Cost) and LTV (Lifetime Value).

Bare with me; I know your eyes are probably glazing over. But if you’re a startup founder, the following is both relevant and vital.

Back to CAC (pronounced ‘kack’) and LTV. By design, each metric puts the customer first. No matter how much you think your product is the end all be all, it’s nothing without customers.

At a minimum, learn what these key performance indicators are and how to calculate them for your business. Further, integrate them into your business early on. Make sure everyone in your company becomes fluent in CAC and LTV.

Read more in this article I wrote at

Speaker, investor, mentor, startup founder. One of 3 or 4 Co-Founders of MapQuest (sold to AOL for $1.2B). Managing Director of $25M Venture Fund in late 90's. CEO, COO or President of various companies ranging from $200k to $20M in size. One of two Managing Directors of The Startup Factory (35 investments across 7 cohorts), founder and MC of the Big Top Reverse Job Fair and national writer and speaker waxing poetic around startups and startup communities. Currently EIR @ Techstars with Brad Feld ~ Startup Communities, to help community leaders around the world grow their startup community.

Leave a reply:

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Site Footer