Digital Marketing Glossary

View all Glossary items

LTV:CAC Ratio

This compares a customer's lifetime value to the acquisition cost, indicating long-term value.

Formula: LTV:CAC = Customer Lifetime Value / Customer Acquisition Cost

Example: If the CAC is $50 and the LTV is $300, the LTV:CAC ratio is 6, meaning you're generating $6 of value for every $1 spent to acquire customers.

So How About It? 

AI smarts, award-winning service, and a clear, intelligent strategy for your ecommerce brand so you’re set to grow today and tomorrow
Explore Big Picture Performance
Get in touch
Grow your business.
Today is the day to build the business of your dreams. Share your mission with the world — and blow your customers away.
Start Now