CAC:LTV Ratio
What is
CAC:LTV Ratio
CAC LTV ratio, the ration of the customer acquisition costs and the customer lifetime value, tells you how much the company should spend on acquiring a new customer. This is an important indicator especially for subsription-based companies.
Related terms and methods:
- CAC (Customer Acquisition Cost)
- Customer Life Cycle
- Customer Retention
- LTV (Lifetime Value of Customer)
- SaaS (Software as a Service)
- Subscription
- Subscription business model
Related management field:
- Marketing and Sales
- Trade
Last update: 23.01.2019
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