What is it?

The LTV to CAC ratio compares the lifetime value of a customer to the cost of acquiring them. It is used to assess the sustainability of growth.

Higher ratios generally indicate healthier economics.

Examples in Action

• Evaluating long-term acquisition viability
  
• Comparing channels or segments
  
• Informing growth strategy decisions
  
• Assessing profitability thresholds
  

Typical Outcomes / Results

• Improved financial sustainability
  
• Better prioritisation of acquisition efforts
  
• Clearer understanding of growth economics
  
• Stronger strategic alignment
  

This glossary entry reflects standard growth metric usage.