customer-acquisition-cost

This article discusses key unit economics and efficiency metrics for SaaS businesses, including CAC payback, LTV:CAC ratio, contribution margin, and the rule-of-40. It explains how to calculate and analyze these metrics to understand the underlying profitability drivers and unit-level economics of the business.

Understanding unit economics is essential for analytics professionals in SaaS and product-driven businesses. This post emphasizes how focusing on granular, per-customer profitability metrics can outlast vanity growth metrics, providing a more sustainable view of business performance. By mastering techniques to analyze customer acquisition costs, lifetime value, and other unit-level metrics, analysts can uncover crucial insights to inform strategic decision-making and drive long-term success.