CAC, LTV, & LTV to CAC ratios measure recurring revenue business models' scalability, with limits, by www.a2zCFO.com, Rolf Neuweiler, consulting CFO for small businesses. (925) 216-5058 or email: rolf@a2zCFO.com

Customer Lifetime Value (CLV) and CLV to CAC Ratio – Part 2 of 2

In Part 1, we discussed CAC (customer acquisition cost), how to use it and its limitations. In Part 2 here, we will explain about CLV and CLV to CAC ratio. CLV – Customer Lifetime Value CLV (sometimes referred to as LTV) represents the total amount of revenue a business gets from a customer over the…