One Question from the Webinar
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Forum Discussion
CAC & LTV are the 2 most important metrics for any business to measure.
Totally fair point — CAC and LTV are important metrics, especially when you're looking to scale strategically. But here’s the reality from inside the field:
If you don’t have profitable pricing in place first, CAC and LTV can give you a false sense of success. You might be acquiring customers efficiently, but if your margins are broken, you’re just scaling losses.
For folks just starting out — or even established businesses that haven’t nailed job costing — there are more foundational metrics that need attention first:
- Gross profit margin (you can’t optimize CAC if you don’t know what profit you’re working with)
- % labor to revenue (biggest variable cost in service businesses)
- Revenue per job vs. net profit per job
- Close rate (to understand how leads convert)
Once those are under control, that’s when CAC and LTV become meaningful — and powerful.
Happy to walk anyone through how to calculate both — but only after we’ve verified that pricing and profitability are solid. Otherwise, it's just guessing dressed up as strategy.
