Gartner Research

Emerging Provider Executive Insights: Mastering CLTV and CAC Metrics to Guide and Track Growth

Published: 04 October 2017

ID: G00335534

Analyst(s): Ed Cordin

Summary

The variety of management metrics available to emerging provider CEOs can be overwhelming. However, customer acquisition cost and customer lifetime value have risen in prominence, and with good reason. This research profiles why and how each is essential for guiding and tracking growth.

Table Of Contents

Introduction

Analysis

  • CLTV and CAC — How Are They Defined?
  • What Can Each Metric Be Used For?
  • What Can Be Discovered From a CLTV/CAC Ratio?
  • What Else Will Drive a CLTV/CAC Ratio Outside the Attractive Zone?
  • Conclusion

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