What is a good customer lifetime value?

The ratio between customer lifetime value (LTV) and customer acquisition cost (CAC) is a vital e-commerce metric, especially for subscription-based companies.

3:1 is the ideal ratio between LTV and CAC. If you get a ratio of 1:1 ratio means your spending is huge. Whereas the 5:1 ratio means your spending isn't sufficient. Both percentages aren't suitable to excel in a business and indicates that you need to work on your strategy.