Ratio of Customer Lifetime Value to CAC
The Ratio of Customer Lifetime Value with CAC shows a comparison between a customer's total lifetime value and total cost spent by the company to acquire that customer. It's always important to understand this CLTV: CAC ratio as this metric represents your finance team's efficiency. Our Ratio of Customer Lifetime Value to CAC Calculator helps you in understanding your company's performance easily. A decision delayed for a minute will cost you years! So check your CLTV: CAC immediately with GlobalClarity's Ratio of Customer Lifetime Value to CAC Calculator.
Why is it important to know LTV:CAC?
1. Ratio of Customer Lifetime Value to CAC Helps you in assessing your company’s performance.
2. Ratio of Customer Lifetime Value to CAC Helps you in balancing the company’s expenses.
3. Any abnormalities in LTV: CAC ratio indicates a malfunction in your sales and marketing team. Know your Ratio of Customer Lifetime Value to CAC now!
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Customer Lifetime Value Calculator (CLTV)
Customer Life Time Value represents the amount a customer spends on your business in a lifetime of his relationship with the company. Use our calculator to know your company’s CLTV.
Customer Acquisition Cost Calculator (CAC)
The Customer Acquisition Cost (CAC) is a metric used to know total avg cost spent by your company to acquire new customers. Check your company’s CAC now.
Marketing % Of Customer Acquisition Cost
Calculate the total marketing portion of your total CAC, Represented in percentage (%).
Marketing Originated Customer %
The Marketing Originated Customer % is a metric which shows the percentage of customers of a company who are acquired by their companies marketing efforts.
Time to Payback CAC
The Time to Payback CAC is a metric which shows how many months it takes for a company to earn back it’s CAC. Calculate your company’s time to payback CAC.
Marketing Influenced Customer %
Marketing Influenced Customer % helps you in knowing what percentage of customers interacted with your marketing team in their purchase journey. Calculate your companies MIC% now.
Most frequent questions and answers
LTV is a (Revenue the customer pays in a period – gross margin) ÷ Estimated churn percentage for that customer
The higher the LTV:CAC, the more ROI your sales and marketing team is delivering to your bottom line. However, you don’t want this ratio to be too high, as you should always be investing in reaching new customers. Spending more on sales and marketing will reduce your LTV:CAC ratio, but could help speed up your total company growth.