LTV:CAC Ratio for ECommerce: What Is It and How to Improve It
Every business has a different strategy for customer acquisition, but there are certain similarities among startups. One of the metrics that’s considered before optimizing customer acquisition is the Customer Lifetime Value (LTV) to Customer Acquisition Cost (CAC) ratio (LTV:CAC ratio). For e-commerce, this is the ratio between the average value of a customer and the …
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