Customer Acquisition Cost (CAC)

Definition: Customer Acquisition Cost is the amount of money it costs the business to acquire a new customer.

Customer Lifetime Value (CLTV | LTV)

Definition: The customer lifetime value is the amount of money a company expects to earn from a customer over the span of the relationship between the customer and company.

LTV:CAC Ratio

Definition: The LTV:CAC ratio is used to determine the amount of money a company expects to profit from an additional customer over the span of the relationship between the customer and company . This metric helps you figure out how much you should spend to acquire new customers.