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
Top 6 Shopify Sales Funnel Apps
Shir Lapidot
October 25, 2021
7 Best Practices to Dominate Snapchat Ads in 2023
Ashley Stander
October 24, 2022
5 Discount Techniques to Improve Your Shopify Product Bundles
Jaques Cilliers
May 2, 2023
Related Posts
Ashley Stander
Your Guide to LTV/CAC Ratio in E-Commerce
Luis Velez Torres
5 Expert Ways to Lower Your CPA Through Ad Spend
Can't find what you're looking for?