STOP OPTIMIZING FOR A CAC:LTV RATIO OF 1:3

Summary from the TLDR Marketing newsletter

Targeting a 1:3 CAC:LTV ratio or trying to lower CAC as much as possible is not the best strategy. It drives linear funnels instead of sustainable loops. The LTV calculation is usually loaded with endless assumptions that make it a useless metric. Use customer payback periods to measure acquisition activities instead. This article shares benchmark payback periods for B2C and B2B businesses.