Everybody dreams of growing into a big company and to achieve popularity, they try every possible method. In order to achieve your goal of expanding your business, you need to figure out a question like how much will it cost to accomplish one customer? Moreover, how much will this customer bring? These questions will help you a lot in accomplishing your target.
In the world of business, there is a term known as KPI (Key Performance Indicator) to evaluate the effectiveness of your business. It is useful in knowing how much is your business growing and at what rate. Basically, there are two KPIs, namely, CAC (Customer Acquisition Costs) and LTV (Lifetime Value of a customer). LTV is more critical than CAC. They both are put to use to evaluate the feasibility of the business and its rate of expansion.