You can grow yourself straight into bankruptcy if every customer costs more to acquire than they’re worth. The LTV:CAC ratio is the one check that catches that before it kills you.
The two numbers
- LTV (lifetime value) — average revenue a customer brings before they churn.
- CAC (customer acquisition cost) — total sales & marketing spend ÷ new customers.
- The ratio — LTV ÷ CAC. Below 1 you lose money per customer; aim for 3+.
The attribution connection
CAC is an average that hides everything. Your real CAC varies wildly by channel — some posts bring customers for free, others cost you hours for nothing. Attribute revenue to content and your blended CAC splits into per-channel truth, so you can spend where the ratio is healthy. That per-channel view is exactly what seenpaid gives you.