Retention, churn & expansion · Core

Lifetime value to acquisition cost

Also called: LTV:CAC

ELI5

Customer lifetime value divided by customer acquisition cost under compatible assumptions.

Used in conversation

“Compare lifetime value to acquisition cost with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Lifetime value to acquisition cost” in go-to-market plans, sales forecasts, account reviews and commercial proposals when the discussion reaches retention, churn & expansion.

Why it matters: It helps a reader interpret retention, churn & expansion without confusing the measure, decision, role or evidence being discussed.

Connected terms

Sources & evidence · 2

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.