Acquisition

CAC

Customer Acquisition Cost — the marketing spend required to acquire a new customer. Healthy CAC is judged relative to LTV: a 3:1 LTV-to-CAC ratio is a common benchmark, but the right target depends on margin and payback period.

Related Terms

Acquisition→

ROAS

Return on Ad Spend — the revenue attributed to an ad channel divided by the spend on that channel. Platform-reported ROAS is inflated by attribution defaults, so we read it alongside blended ROAS and MER.

Retention→

LTV

Lifetime Value — the total profit a customer is expected to generate across their relationship with the brand. We model it from repeat purchase rate and average order value, and use it to set an affordable CAC.

CAC

ROAS

LTV

Let's buildyour breakthrough.

Let's build
your breakthrough.