Marketing & Sales
Customer Lifetime Value to Acquisition Cost Ratio
The LTV:CAC ratio compares how much a customer is worth over their lifetime to how much it costs to acquire them. A ratio above 3:1 is generally considered healthy.
Why It Matters
This ratio tells you whether your growth engine is sustainable. Below 1:1, you're losing money on every customer. Between 1:1 and 3:1, you're surviving. Above 3:1, you have a real business.
How Novastra Helps
Novastra works both sides of the ratio: reducing CAC through better channel strategy and increasing LTV through retention and upsell architecture.
Customer Lifetime Value / Customer Acquisition Cost
Framework Phase
4
Strategize
Build the architecture of growth