Measure the relationship between customer LTV and CAC.
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Your LTV:CAC Ratio is:
What is LTV:CAC ratio?
The LTV:CAC ratio is a leading indicator that's great for predicting future growth. The metric is represented as a ratio and measures the relationship between the lifetime value of a customer and the cost incurred to acquire that customer. LTV:CAC measures the return on investment of each dollar that a company spends in order to acquire customers. A higher LTV:CAC ratio indicates that your company is growing sustainably.
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