Unit Economics
The per-customer math of a business — LTV vs CAC, margin, payback period.
Unit economics dictate whether a business is sustainable. Healthy: LTV ≥ 3x CAC + payback under 12 months. CLAWVR's target: LTV $400+ on a CAC of $80-150.
Related terms
- Customer Acquisition Cost — The total marketing + sales spend divided by the number of new customers acquired.
- Lifetime Value — The total revenue expected from a customer across their entire relationship.
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