What is the difference?
CAC vs LTV
Customer Acquisition Cost
Customer Lifetime Value
What is it?
Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase, divided across all new customers.
The Customer Lifetime Value (LTV) metric indicates the total revenue a business can reasonably expect from a single customer account. It considers a customer's revenue value and compares that number to the company's predicted customer lifespan. Businesses use this metric to identify their most valuable customer segments.
Who is it for?
Categories
Formula
Published and updated dates
Date created: Oct 12, 2022
Latest update: Mar 21, 2024
Date created: Oct 12, 2022
Latest update: Oct 12, 2022