Digital Marketing Return On Investment
Customer Lifetime Value to Customer Acquisition Ratio (CLV:CAC) The Customer Lifetime Value to Customer Acquisition Ratio (CLV:CAC) measures the relationship between the lifetime value of a customer and the cost of acquiring that customer. Sometimes a company will make the mistake of comparing the cost per acquisition to a single purchase and not the lifetime value. A company will break even if their cost per acquisition is equal to the customer lifetime value. So how do you know if you’re spending the right...
