CAC
Fundamental analysisAlso called: Customer acquisition cost
Customer Acquisition Cost — marketing spend divided by the number of new customers it brought in.
In plain terms
Rising CAC means growth is getting more expensive. Read it against lifetime value: below one, every customer acquired is a net loss.
Read the full lesson →Industry report
Fundamental analysisA commissioned study by an independent research agency, included in an offer document, describing market size, growth, segment split and capacity across an industry.
In plain terms
Often the only free source of a denominator for market share. Take the historical counting and treat the forward projections as advocacy — the report was paid for to sell shares.
Read the full lesson →LTV
Fundamental analysisAlso called: Lifetime value, Customer lifetime value
Lifetime value — the total contribution a single customer is expected to produce across the whole relationship.
In plain terms
Only meaningful next to CAC. Below one, the company is buying revenue rather than earning it.
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