Identify the Base Unit: This is the basic unit that you will use to value the business. This is usually the customer or the unit produced (for example, for a brewery it would be the bottle sold).
Calculate the Customer Acquisition Cost (CAC): If you chose the list of egypt whatsapp phone numbers customer as the economic unit, you must calculate their acquisition cost. To do this, you have to divide all the expenses involved in acquiring them (advertising, sales team, etc.) by the number of customers acquired in a month.
Calculate Customer Lifetime Value (LTV): This is the volume of revenue generated by the customer (or the unit you have chosen) during the period of time that the business will have a relationship with them.
Calculate the CLV/CAC ratio: ideally, the result should be positive , meaning that the income from the customer should be greater than the cost of acquiring it.
The importance of Unit Economics
The relevance of this type of business indicators is due to their usefulness in any phase of business development to optimize strategic decision-making, determine growth prospects and even to raise capital from investors.
