FORGET A LTV:CAC RATIO TO PREDICT GROWTH. LOOK AT THIS INSTEAD!

Summary from the TLDR Marketing newsletter

Looking at Customer Acquisition Cost (CAC) payback period and Net Dollar Retention (NDR) together provides you with a strong predictor of efficient growth. Companies with a high NDR (>100%) and low CAC payback period (<18 months) have a median growth rate of 65% YoY. Meanwhile, those with a low NDR and high CAC payback period typically grow by 20% YoY. This data is based on a SaaS benchmark survey of 700+ companies from last year.