Unit Economics

Unit Economics refers to the financial numbers around a single “unit,” which typically refers to a single customer. Many of the metrics in the Churnopedia are the basics of unit economics, especially:

  • Customer Lifetime Value (CLTV)
  • Customer Acquisition Cost (CAC)
  • Gross Margin

If your business can get a good understanding of the economics of a single customer (“unit”), then investment decisions become easier.