Get insights delivered straight to your inbox.

LTV to CAC ratio

What is LTV to CAC ratio?

Your LTV:CAC or lifetime value to customer acquisition cost is a ratio that compares the value of a customer over the lifetime of their relationship with your business to the cost of acquiring them. If your ratio is less than one, this means that you spend more on acquiring customers than the value they bring to your store.

How can I leverage my LTC to CAC ratio?

Your LTV:CAC ratio helps you see if you've positioned yourself for sustainable growth. It also allows you to determine your marketing and sale budget to maximize your growth rate while staying competitive.