Glossary
Glossary
Glossary
CAC:LTV Ratio
CAC:LTV Ratio
Definition
Compares the cost of acquiring a customer (CAC) to the lifetime value of that customer (LTV). A higher ratio indicates that customers generate more revenue over their lifetime than it costs to acquire them, suggesting a healthy return on marketing investments.
Compares the cost of acquiring a customer (CAC) to the lifetime value of that customer (LTV). A higher ratio indicates that customers generate more revenue over their lifetime than it costs to acquire them, suggesting a healthy return on marketing investments.
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