What is LTV-CAC Ratio? π
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 isββa ratio of 3:1 indicates your customer's value is three times more than the cost of acquisition.
β¦
Keep reading with a 7-day free trial
Subscribe to Rabbit Hole to keep reading this post and get 7 days of free access to the full post archives.