Strategy and branding

LTV/CAC ratio

The LTV/CAC ratio compares a customer's lifetime value with the cost of acquiring that customer. The metric shows how many times a company earns back its acquisition cost over the customer relationship. A healthy ratio indicates that growth can be scaled without the economics tipping over.

A webshop with an LTV of $360 and a CAC of $90 has an LTV/CAC ratio of four, which is generally considered solid.

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Affiliate Marketing Annual marketing calendar ARR Audience analysis B2B B2C Baby Boomers Brand ambassador
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