Unit Economics: Is Customer Lifetime Value > Cost of Customer Acquisition?
This post provides Entrepreneurs, Business Managers and Investors provides a simplified model and an introduction to Unit Economics enabling you to validate if the business model for any SaaS or subscription/recurring revenue business is viable.Unit Economics answer a key business question: Is the Lifetime Value of a customer significantly higher than the cost to acquire a customer? We also have a look at various factors, how they can impact unit economics and how you can check your unit economics in 7 steps. Why is this so relevant? Only if you get your unit economics right, you can invest funds into scaling your business.