Understanding Business Metrics (Revenue, Churn, CAC, LTV)

Summary

The recurring vocabulary of any business conversation — revenue, churn rate, customer acquisition cost, lifetime value — knowing these cold lets you connect your analysis to what leadership actually cares about.

• 1Define each of these 4 metrics in your own words, with a formula where relevant.
• 2Find these metrics (if public) for a company you're interested in and sanity-check them.
• 3Practice explaining why a metric moved in terms leadership would care about.