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Aggregate and compare your shops' financials no matter the platform, country, and brand.

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Monitor customer retention and lifetime value for long-term business health.

Real-Time Performance

Leverage high-frequency data refresh for immediate loss prevention and optimization.

Analytics Suite

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See exactly what’s eating your orders' profitability.

Unlock the impact of shipping methods on LTV, AOV, repurchase rates, and overall profitability.

Master discounts data to grow your profits.

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Analyze returns by date, sales channel, coupon code or country.

Compare yourself to your industry in profit, expenses, and all key parameters.

Data Management

Connect platforms and tools you work with to collect expenses, revenue, and other eCommerce data in real time.

Predicted Costs

Include all your future costs and have the most accurate picture of your net sales at all times.

Data Sync Solutions

Discover BeProfit's easy data import options: Google Sheets, Bulk update CSV, and automated UI.

Custom Expenses & Revenue

Flexible Expense and Revenue tracking from variable costs to recurring bills,with contra entries and conditional allocations.

Profit Simulators

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What does the LTV:CAC ratio indicate?

Asked 3 years ago

What does LTV to CAC tell us, what would be a good ratio, and how do we calculate it?

Ltv cac ratio Customer lifetime value Cost of acquisition Cac

+1

Gareth Browne

Friday, November 12, 2021

LTV means Life Time Value, CAC means Customer Acquisition Cost. The ratio compares the value of a customer over their lifetime compared to the cost of acquiring them.
The formula for this is as follows:
LTV/CAC ratio is the (LTV) divided by the (CAC).

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