Sales Metrics: CAC, LTV, and Win Rate

(Customer Acquisition Cost, Lifetime Value, Win Rate)

Three numbers every salesperson should know cold: how much you spend to get a customer, how much they are worth, and how often you win.

Definition

The three fundamental quantitative measures of sales efficiency: how much it costs to acquire a customer, how much revenue that customer generates over their lifetime, and what percentage of qualified opportunities close.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.