LTV:CAC-Ratio of Customer Lifetime Value to Customer Acquisition Cost

It’s an estimate of the total value your company receives from each client in comparison to what you spent to acquire that client.
The cost of customer acquisition (CAC) means the price you pay to acquire a new customer. To get a return on investment (ROI) from your marketing and sales campaigns, the important ratio to focus on, then, is one that tells you exactly how much value you’re making from your customers in relation to how much it cost me to acquire them:
LTV:CAC
Less than 1:1- You’re on the road to oblivion, and fast
1:1 – You’re losing money from every acquisition
3:1 – The perfect level. You have a thriving business and a solid business model.
4:1 – Great news but you’re under investing and could be growing faster. Start more aggressive campaigns to acquire customers and bring your ratio closer to 3:1

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