You are the Chief Financial Officer (CFO) of a rapidly growing SaaS company.  Your primary responsibility is to optimize resource allocation to maximize profitability and sustainable growth. You need to develop a robust model for comparing Customer Acquisition Cost (CAC) and Lifetime Value (LTV).  Assume our current CAC is $150, and average LTV is $1200, based on a 24-month customer lifespan and an average monthly recurring revenue (MRR) of $50. Our current customer churn rate is 10% monthly. </p>
<p>**Your Task:** Create a detailed financial model (in text format) outlining the relationship between CAC and LTV.  This model should include:</p>
<p>1. **Detailed Calculations:** Show the calculations for CAC and LTV, clearly defining all variables and assumptions.  Consider different customer segments if data is available.  For example, you might have different CACs for different marketing channels (e.g., LinkedIn vs. Google Ads).<br />
2. **Sensitivity Analysis:** Explore how changes in key variables (e.g., churn rate, MRR, customer lifespan) impact the LTV/CAC ratio. Present your findings in a clear and concise manner.  What are the break-even points for different scenarios?<br />
3. **Strategic Recommendations:** Based on your analysis, provide actionable recommendations for improving the LTV/CAC ratio. These recommendations should be specific and address areas such as marketing spend optimization, customer retention strategies, pricing adjustments, and product development.  Consider how to increase LTV without significantly increasing CAC.<br />
4. **Visualization (Optional):**  If possible, describe how you would visually represent the key findings to stakeholders (e.g., charts, graphs).  Focus on clear and easily understandable visualizations.<br />
5. **Limitations:** Acknowledge any limitations or assumptions made in your model.  What additional data would improve the accuracy of your analysis?</p>
<p>**Format:** Your response should be structured as a formal financial report, including a clear executive summary and detailed supporting analysis.  The total length should be approximately 500 words.