What is a good customer lifetime value?
Asked 4 years ago
Apparently, your customer lifetime value is related to your customer acquisition cost (CAC). What is a good ratio for an eCommerce business to have?
Abeeha Qasmi
Tuesday, October 12, 2021
The ratio between customer lifetime value (LTV) and customer acquisition cost (CAC) is a vital e-commerce metric, especially for subscription-based companies.
3:1 is the ideal ratio between LTV and CAC. If you get a ratio of 1:1 ratio means your spending is huge. Whereas the 5:1 ratio means your spending isn't sufficient. Both percentages aren't suitable to excel in a business and indicates that you need to work on your strategy.
Please follow our Community Guidelines
Related Articles
Email Marketing Best Practices—How to Improve Your ROI
BeProfit Staff
April 26, 2023
Perpetual vs Periodic Inventory Systems: Which Is Best for Your E-commerce Business?
Adeel Qayum
March 30, 2023
3 Best Excel Formulas for Calculating Markup vs. Margin
Rosana Antoni
May 5, 2023
Related Posts
Luis Velez Torres
5 Expert Ways to Lower Your CPA Through Ad Spend
Ashley Stander
Your Guide to LTV/CAC Ratio in E-Commerce
Can't find what you're looking for?