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CLTV/CAC Ratio
The CLTV/CAC Ratio is a crucial metric for businesses looking to maximize operational efficiency. Customer Lifetime Value (CLTV) reflects the total value a customer brings during their relationship with the company, while Customer Acquisition Cost (CAC) measures the cost of attracting new customers. A healthy ratio between these two indicators suggests that the business is acquiring customers sustainably and profitably, enabling future investments in growth and improvements.
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