Why use it
The LTV:CAC Ratio enables you to stay on top of your marketing spendings and adapt them if necessary.
The average lifetime value of a customer divided by the customer acquisition cost gives the LTV:CAC Ratio.
The average lifetime value of a company’s customers is 100 €, their CAC amounts to 25 €.
|÷ 25 €|
|4:1 LTV:CAC Ratio|