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Sharing the model that Intercom use to measure LTV:CAC, Magic Number, Payback
- bobbypinero 3y agoHey HN, Bobby here, CEO and cofounder of Equals. Before Equals I ran Finance and Analytics at Intercom. I joined when it was 20 people and left when it was over 700. I worked with 2 previous Intercom Finance folks to share how we modeled LTV:CAC, Magic Number, and payback periods. I know that sales-efficiency is under a fine microscope these days with everyone trying to preserve runway. So we wanted to share how we approached measuring the return on our sales spend in the hopes it could be helpful to others. In the post there's a template you can use (it lives in Equals), a written walk through of the Intercom story, and a video walk through. All of the numbers in the model are fake. But the structure is exactly the same as what we used at Intercom. Hope it's useful. Bobby