unit-economicslisted
Install: claude install-skill sarojkjha/aaj-marketing-skills
# Unit Economics & LTV:CAC
Establish whether a business can profitably acquire customers — the foundation under every budget and growth decision. Get **LTV**, **LTV:CAC**, and **CAC payback**, then judge them against healthy ranges. This is usually the first thing to run before any paid-media or budget work.
## When to use
The user needs to compute or validate unit economics, set a CAC ceiling, or answer "can we afford to spend more?"
## Before you start
1. **Read the brand/product context first** (`.agents/product-marketing.md` / `.agents/aaj-brand.md`) for model and pricing, if present.
2. **Gather inputs for the model:**
- **Subscription:** monthly revenue per account (ARPA), gross margin %, monthly churn % (or average lifetime in months), and CAC.
- **Ecommerce:** average order value, gross margin %, orders per year, retention in years, and CAC.
- **Services / contract:** average contract value, gross margin %, retention in years, and CAC.
- If CAC isn't known, supply ad spend and customers acquired to derive blended CAC.
## The math
```
Subscription: LTV = (ARPA_monthly × grossMargin%) ÷ monthlyChurn%
CAC payback (months) = CAC ÷ (ARPA_monthly × grossMargin%)
Ecommerce: LTV = AOV × grossMargin% × ordersPerYear × retentionYears
Services: LTV = ACV × grossMargin% × retentionYears
Everywhere: LTV:CAC = LTV ÷ CAC
```
Always use **gross-margin** LTV (revenue × margin), not revenue LTV — revenue you don't keep can't pay back acqu