SaaS
LTV/CAC Ratio
A health ratio for subscription economics.
LTV divided by CAC. Target: 3:1 or better. Below 1:1 you lose money on acquisition. Above 5:1 you are probably under-investing in growth.
A health ratio for subscription economics.
LTV divided by CAC. Target: 3:1 or better. Below 1:1 you lose money on acquisition. Above 5:1 you are probably under-investing in growth.