LTV CAC Ratio

ɛltiːˈviː ˈkɑk fɔɾˈhoːl
norskenhetsøkonomikundeverdilønnsomhet

Definisjon

En nøkkelmetrikk som sammenligner hvor mye fortjeneste en kunde genererer over sin levetid med hvor mye det koster å skaffe den kunden

Synonymer3

CLTV:CAC ratiolifetime value ratiocustomer value ratio

Antonymer2

negative unit economicsloss ratio

Eksempler på bruk3

1

• Healthy SaaS businesses maintain 3:1 LTV:CAC ratios

2

• E-commerce companies target 4:1 or higher ratios

3

• Ratios below 1:1 indicate unsustainable unit economics

Etymologi og opprinnelse

Combination of Customer Lifetime Value and Customer Acquisition Cost ratio analysis

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The LTV CAC Ratio (Lifetime Value to Customer Acquisition Cost Ratio) is a critical financial metric that measures the efficiency and profitability of acquiring customers in marketing and business strategy. Emission data, typically referring to environmental impact metrics such as carbon emissions associated with business operations, can be integrated into digital and marketing strategies to optimize not only financial outcomes but also sustainability goals. Specifically, by incorporating emission data into customer acquisition and retention analyses, businesses can evaluate the environmental cost embedded in their LTV CAC Ratio. For example, marketing campaigns or customer segments that yield a high LTV CAC Ratio but also generate disproportionately high emissions may prompt a strategic pivot towards greener acquisition channels or customer profiles with lower environmental footprints. This integration enables companies to balance profitability with sustainability, aligning marketing spend and customer targeting with broader ESG (Environmental, Social, Governance) objectives. Additionally, emission data can inform digital strategies by identifying energy-intensive digital touchpoints (e.g., data-heavy ads, video content) that affect the carbon footprint per acquired customer, thus influencing the CAC component of the ratio. Therefore, emission data acts as a supplementary dimension that refines the interpretation and strategic application of the LTV CAC Ratio, enabling businesses to pursue growth that is both economically and environmentally sustainable.

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assosiasjonskart

The LTV CAC Ratio (Lifetime Value to Customer Acquisition Cost Ratio) is a critical financial metric used to evaluate the efficiency and profitability of acquiring customers in marketing and business strategy. An assosiasjonskart (association map), often used in digital strategy and marketing, visually maps out the relationships between concepts, customer perceptions, or brand attributes. The practical connection lies in how an assosiasjonskart can inform and optimize the inputs that directly affect the LTV CAC Ratio. Specifically, by using an assosiasjonskart to uncover and understand the associations customers make with a brand or product, marketers can identify key value drivers and pain points that influence customer lifetime value (LTV). This insight enables more targeted marketing strategies that improve customer retention, upsell opportunities, and reduce churn, thereby increasing LTV. Simultaneously, the assosiasjonskart can highlight which messaging or channels resonate best, allowing for more efficient allocation of acquisition spend and lowering CAC. In digital strategy, integrating insights from assosiasjonskart analyses into campaign design and customer journey mapping directly impacts the components of the LTV CAC Ratio, making it a strategic tool for improving this ratio. Thus, the assosiasjonskart serves as a qualitative foundation that guides quantitative improvements in customer acquisition cost efficiency and lifetime value maximization.

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