- CAC (Customer Acquisition Cost): The total average cost invested to acquire a new customer (marketing, sales salaries, etc.).
- LTV (Customer Lifetime Value): The estimated net profit that a customer will generate for the company throughout their entire commercial relationship.
In venture capital models (especially SaaS), the LTV:CAC ratio is required to exceed 3 (the customer must contribute at least three times what it costs to acquire them) to demonstrate financial viability and scalability.
Don’t hesitate, request advice from our experts.
