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Mastering Profitability: CAC vs. CLTV Explained

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Mastering Profitability: CAC vs. CLTV Explained (Video)

Discover the key to sustainable business growth by mastering Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV). Learn how to evaluate profitability, optimize cash flow, and achieve the ideal 3:1 CLTV-to-CAC ratio for long-term success. Watch now for actionable insights!
To run a profitable business, it’s crucial to evaluate two key metrics: Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV). CAC is the cost spent to acquire a new customer, while CLTV represents the total revenue a customer generates over time. A healthy business aims for a CLTV-to-CAC ratio of 3:1, meaning for every dollar spent on acquisition, you earn three dollars in return.
The break-even analysis shows how long it takes for a customer to repay their acquisition cost. This helps optimize customer acquisition strategies and cash flow for long-term profitability and growth.

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