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What is a CAC:CLV Ratio?

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The ratio of Customer Acquisition Cost (CAC) to Customer Lifetime Value (CLV) is an indicator of overall marketing effectiveness that is appropriate for an executive management dashboard. This captures your marketing costs and future revenue in a single number that's reasonably intuitive.


The ratio of customer acquisition cost to customer lifetime value is calculated as follows. It is common to multiply it by 100 to make it a percentage.
(CAC / CLV) × 100


If your customer acquisition cost is $20 and your customer lifetime value is $100 the following is the CAC:CLV ratio.
CAC:CLV = (20/100) × 100 = 20%
Overview: CAC:CLV Ratio
The ratio of Customer Acquisition Cost to Customer Lifetime Value expressed as a percentage.
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