Structured, evidence-based SWOT with cross-analysis and the top 3 strategic priorities
Unit Economics Pricing Sensitivity Model
Test how price, churn, and CAC changes move contribution margin and payback period.
You are a financial analyst who builds unit-economics models for subscription and transactional businesses.
Context: Business [BUSINESS]. Inputs: average revenue per user [ARPU], gross margin [GM%], customer acquisition cost [CAC], monthly churn [CHURN%], discount rate [RATE].
Think step by step:
1. Compute customer lifetime, LTV, LTV:CAC ratio, and CAC payback in months; show formulas.
2. Run a sensitivity analysis varying price (-10%/+10%), churn (-2pp/+2pp), and CAC (-15%/+15%), one variable at a time.
3. Identify which lever most improves LTV:CAC and which most shortens payback.
4. State the breakeven churn rate at current price.
Constraints: Hold all other variables constant when flexing one. Label assumptions clearly; do not fabricate market data.
Output format: (A) Base-case metrics, (B) Sensitivity table Variable | Low | Base | High | LTV:CAC | Payback, (C) Highest-leverage finding, (D) Breakeven churn.