Oct 17 (edited) • 🇺🇸 English
💡 Master the LTV/CAC Ratio to Scale Your Business
In marketing and business growth, success doesn’t come from selling the most, but from understanding your numbers. And the most important one of all is:
LTV ÷ CAC = Efficiency and Scalability
🔹 LTV (Lifetime Value): the total net profit a customer generates throughout their relationship with you.
🔹 CAC (Customer Acquisition Cost): the total cost of acquiring that customer (ads, team, tools, etc.).
How to interpret the ratio:
- If LTV / CAC > 3 → your business is healthy and scalable ✅
- If LTV / CAC < 3 → you’re at high risk and low efficiency ❌
Imagine you sell websites. Each client pays you $1,500, but between design and tools you spend $500. The real profit per client (LTV) would be $1,000.
As for CAC, you invest $300 in advertising and management to acquire a new customer.
Therefore, we get the following ratio:
LTV ÷ CAC = 1,000 ÷ 300 = 3.33.
For every dollar you invest, you earn $3.33. This means your business is profitable and scalable.
How can we improve the ratio?
- Increase your LTV: create upsells, subscriptions, maintenance plans, or premium services.
- Reduce your CAC: improve your ads, funnels, and conversion rates.
The LTV/CAC ratio is not just another metric — it’s the compass of growth 🚀
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💡 Master the LTV/CAC Ratio to Scale Your Business
