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What is LTV-CAC Ratio? πŸ„

What is LTV-CAC Ratio? πŸ„

Apr 28, 2023
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What is LTV-CAC Ratio? πŸ„
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Customer Acquisition Cost (CAC) and Lifetime Value (LTV) are important metrics for a subscription business to understand the underlying unit economics and inform marketing efforts. Hence, the LTV-CAC Ratio is a good indicator of how valuable your company is––a ratio of 3:1 indicates your customer's value is three times more than the cost of acquisition.

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