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Compares lifetime value to customer acquisition cost ratio to assess business unit profitability and sustainability. Critical SaaS metric.

Guida passo passo

  1. 1Calculate CLV (lifetime profit per customer)
  2. 2Calculate CAC (total acquisition cost per customer)
  3. 3Divide: CLV ÷ CAC
  4. 4Compare: 3:1 acceptable, 5:1 excellent

Esempi risolti

Ingresso
CLV $2500, CAC $100
Risultato
25:1 ratio

Errori comuni da evitare

  • Using gross profit instead of net profit for CLV
  • Including one-time setup costs in recurring revenue CLV

Domande frequenti

Why is this ratio important?

Shows how many dollars of value each acquisition dollar generates; indicator of sustainable growth.

How can I improve the ratio?

Increase CLV through retention and upsell; decrease CAC through channel optimization and referrals.

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