AlgoMags
Unit Economics
The cost and value of each customer, which decide how much can be spent to acquire one.
Sub-techniques
| ID | Name |
|---|---|
| MK-T0603.001 | Customer Acquisition Cost (CAC) |
| MK-T0603.002 | Customer Lifetime Value (LTV) |
| MK-T0603.003 | LTV to CAC Ratio |
| MK-T0603.004 | CAC Payback Period |
Sub-technique details
Customer Acquisition Cost (CAC)
Total sales and marketing cost divided by new customers in the period.
Customer Lifetime Value (LTV)
Average gross margin per customer over the relationship.
LTV to CAC Ratio
Value returned per unit of acquisition cost; 3:1 is a common benchmark.
CAC Payback Period
Months of gross margin needed to recover acquisition cost.
Other techniques in Measurement & KPIs
- MK-T0601 KPI Framework
- MK-T0602 Funnel Metrics
- MK-T0604 Channel Metrics
- MK-T0605 Key Event Tracking (GA4)
- MK-T0606 UTM Taxonomy
- MK-T0607 Attribution Fundamentals
- MK-T0608 One-Page Reporting
- MK-T0609 Lead Quality Scoring
Was this page helpful?