Investment
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Unit Economics: Our CAC, LTV and Payback Targets

SaaS unit economics fundamentals, CAC-LTV-Payback metrics and EGEROBOT's sustainable growth strategy.

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İsmail Murat Bayık
January 17, 2023
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Unit Economics: Our CAC, LTV and Payback Targets

Unit Economics: Our CAC, LTV and Payback Targets
Unit Economics: Our CAC, LTV and Payback Targets
SaaS conversations in Türkiye dwelled at the level of "is the product good, do users love it?" for a while. In the last two years, however, the language of both domestic and foreign investors has settled into a much clearer place: is there growth, and is this growth healthy? Today, for a venture capital investor, the most critical issue is not that sales are increasing; it's that the unit economics of sales are positive. Simply put: The money you spend to acquire a customer must be less than the return you'll get from that customer over their lifecycle. If this equation doesn't hold, growth just means sinking faster. Especially in markets like Türkiye, where there's currency fluctuation, budget constraints, and long corporate purchasing cycles, unit economics is the investor's "reality test." This is why in EGEROBOT®'s investment approach, CAC, LTV, and payback concepts are not just metrics explained to investors; they are the fundamental pillars of the growth strategy.

CAC: Customer Acquisition Cost

CAC (Customer Acquisition Cost) is an item that most startups in Türkiye measure incompletely. Because the cost of sales is not just the advertising budget. The team going to the field, presentations made, demo processes, proposal cycles, technical pre-sales, IT security meetings, even negotiations with the procurement department... All of these go into CAC. The character of corporate B2B sales in Türkiye naturally pushes CAC upward. Because the decision mechanism is not one person; it's a committee. Convincing a committee is a more expensive and longer process than winning one person's approval. For this reason, EGEROBOT®'s unit economics targets are not based on an unrealistic assumption like "CAC is low in Türkiye." On the contrary, it rests on a setup where healthy growth is possible even in a market where CAC can be high. The way to do this is to increase revenue per customer and keep churn low. That is, even if CAC is high, LTV must be higher.

LTV: Customer Lifetime Value

LTV (Lifetime Value), or customer lifetime value, is the real reason SaaS can receive investment. For a SaaS company, a customer is not a revenue source that ends when they buy once; it's a subscription relationship that can last for years. For this model to be strong, the product needs to be "mission-critical" not "dispensable." This is why vertical SaaS strategy in regulated sectors is so attractive to investors. Processes such as occupational health and safety, environmental compliance, auditing, training, periodic controls are not operations that institutions run only for efficiency; they are mandatory operations they run to avoid penalties, reputation loss, and legal risk. When you're the software of mandatory operations, it becomes difficult for customers to leave you. This directly reduces churn. When churn decreases, LTV rises. When LTV rises, CAC is no longer a problem; it becomes a manageable investment cost.

Payback: Recovery Period

A question investors frequently ask in Türkiye is: "So in how many months does CAC pay back?" This question is the essence of payback period. Payback is about SaaS's cash health. Because if you spent, say, 100 units to acquire a customer and the customer brings you 10 units per month, this customer's cost pays back in 10 months. After 10 months, you start making profit. Startups in Türkiye struggle the most here; because sales take a long time, payment terms are long, cash flow is delayed. For this reason, from EGEROBOT®'s perspective, payback target is not just a mathematical metric; it's the company's financial resilience strategy. The longer payback extends, the more growth turns into a "money-eating" monster. The shorter payback gets, the more growth becomes an engine.

The CAC-LTV-Payback Trio

Looking at it as a VC investor, the CAC-LTV-payback trio are three interconnected levers. The table investors love most is: controlled CAC, high LTV, short payback. But how this is possible in real life is important. Many startups in Türkiye cheapen the product to reduce CAC. This brings sales in the short term but devalues the product and kills margins in the long term. This is not the right approach in regulated vertical SaaS. The right approach is to increase the product's value and expand the customer's usage on the platform. On the EGEROBOT® side, this is possible with modular growth logic. The customer starts with one module initially, then transitions to other modules within the platform as their needs expand. This approach increases ARPA, the average revenue per account. When ARPA rises, LTV increases. Thus, CAC's weight decreases.

Expansion Revenue and NRR

This is also a topic that domestic investors particularly care about in Türkiye: "As this customer grows, do you grow too?" Because the healthiest SaaS growth comes from expansion within existing customers rather than customer acquisition. These expansion revenues increase NRR, net revenue retention. High NRR tells the investor: The company's growth is not only dependent on finding new customers, but dependent on value generation within the product. This means risk has decreased. Considering economic uncertainties in Türkiye, investors particularly look for this signal. Because acquiring new customers can become difficult, but growing within existing customers is always more possible.

Foreign Investor Perspective

From the foreign investor perspective, there's another critical dimension of unit economics: forex-based resilience and scalability. In Türkiye, where product costs are in TRY and revenues are partly in TRY, currency risk can create different effects during growth periods. For this reason, global funds want to see sustainability in a SaaS startup's financial model together with expansion potential to different markets. EGEROBOT®'s advantage is evident here too: when you're the software of regulated processes, you can build a growth narrative based on similar needs in different markets. This pulls not only growth but also LTV upward. Because product value increases in new markets, pricing power increases, customer segment grows.

Critical Threshold and Investor Role

At the end of all this analysis, EGEROBOT®'s unit economics approach needs to be positioned correctly: We don't position ourselves today at the point of "everything is done." On the contrary, we're at the critical threshold of transforming field-learned experience into scalable SaaS revenue. To pass this threshold, a financially disciplined growth structure needs to be established. Measuring and optimizing CAC, standardizing onboarding processes, establishing customer success function, professionalizing upsell/cross-sell systematics... We see these as steps that will determine post-investment momentum. In accelerating these steps, the investor's experience and network play as critical a role as their capital. For many startups in Türkiye, "sales" is an individual heroism story. However, real scaling happens by building systems. When a system is built, CAC drops, payback shortens, LTV rises.

Conclusion: Unit Economics = Solid Foundation

In conclusion, unit economics is not decoration in EGEROBOT®'s investment story; it's the most solid foundation of growth. A model that measures CAC realistically, grows LTV with modular platform strategy, and strengthens cash flow by shortening payback; produces confidence for both domestic and foreign investors. As EGEROBOT®, we keep our door open to investors today to build this model faster and more professionally. With the right investment partnership, we don't just want to grow faster; we want to grow healthier. Because we know: real value lies not in saying "we grew fast," but in building the unit economics that will make growth sustainable. EGEROBOT®'s door is open to investors; we're ready to sit at the same table with investors who want to build this balance together and create a strong category leader in regulated vertical SaaS.

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