Formula
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
Example
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 | ||
Type | ||
Definition | The ratio of Customer Acquisition Cost to Customer Lifetime Value expressed as a percentage. | |
Related Concepts |