RATIO OF CUSTOMER LIFETIME VALUE TO CAC (LTV:CAC)
Estimate the total value of each customer, compared to what you spend to acquire that new customer.
Start your calculations here
Customer Lifetime Value (CLV)
Revenue the customer pays in a period - gross margin + Estimated churn percentage for that customer
Customer Acquisition Cost (CAC)
Program and advertising spend + salaries + commissions and bonuses + overhead in a month, quarter or year
LTV:CAC to 1
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