The ideal LTV (Lifetime Value) to CAC (Customer Acquisition Cost) ratio according to the Customer Acquisition Toolbox is 3 to 1. This means that for every dollar spent on acquiring a new customer, that customer should bring in three dollars of revenue. This is considered the 'goldilocks' zone for customer acquisition. If the ratio is 1 to 1, it indicates that too much is being spent on customer acquisition. Conversely, a ratio of 5 to 1 suggests that not enough is being spent on growth and more could be invested in acquiring new customers.
Do you spend too much to acquire new customers? Our Customer Acquisition Toolbox can help track and...
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