Startup Terminologies Demystified ๐ 1) LTV (Customer Lifetime Value): The total revenue a business can expect from a single customer during their entire relationship with the company. It helps measure how valuable a customer is in the long run. 2) ARR (Annual Recurring Revenue): The predictable, recurring revenue that a business expects to earn in a year, typically used by SaaS (Software as a Service) and subscription-based companies. 3) CAC (Customer Acquisition Cost): The total cost associated with acquiring a new customer, including marketing and sales expenses. A key metric for understanding the efficiency of customer acquisition efforts. 4) DAU / MAU (Daily Active Users / Monthly Active Users): DAU tracks the number of unique users interacting with a product daily, while MAU measures the same but on a monthly basis. High DAU/MAU ratios often indicate strong user retention.
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