Give you a clear picture of when your cac will be recovered and you will . See a profit (break-even point).For example, let's say a subscription service has an ltv of . , yen, a cac of , yen, and an average retention period of months. In . This case, one customer will generate a profit of , yen over months, so it . Is possible to calculate the breakeven point as follows:example of profit generation point calculationltv of . , yen ÷ retention period of months = monthly profit per customer is approximately , .
Yencac , yen ÷ monthly profit per customer , yen = about monthsin other words, . The cac can be recovered after months of continued use, and the longer the contract . Is continued, the israel whatsapp number data more profits will be generated.In other words, if the contract is cancelled . Within months, the cac cannot be recovered and the company will incur a loss.This way . You can clearly determine the cac payback period and how much profit you will make . After that. Future cash flows and growth potential can be predictedthe unit economics value can .
Be used to predict the health and growth of a business's cash flow over the . Medium to long term.For example, let's say there is a business that appears to be . Steadily growing in sales. However, if the unit economics are below , or just above . , it may be difficult to recover the cac investment, and good cash flows may . Not be expected in the future.On the other hand, even if a business appears to . Be in the red, if the unit economics are around , it is possible to .
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