Definition
The canonical answer.
The LTV to CAC ratio compares customer lifetime value to customer acquisition cost, stating how many dollars of value each acquisition dollar buys. A commonly used healthy benchmark is 3 to 1; below break-even the offer loses money per customer and no media optimization can rescue it, because the constraint is the economics.
Worked example
In practice.
A business acquires customers at a loss and asks for better ads. The math shows the ratio misses 3 to 1 at any realistic click cost, so the fix is the offer: pricing, retention, or order value. When the ratio clears, the same campaigns scale profitably without a single new creative.
Where this work happens: Paid Advertising
Is this your constraint?
The 24-hour audit tells you, with a screen-recorded walkthrough of your own funnel.
Book a growth audit →