Are You Spending Too Much to Get New Clients?
Calculate your client acquisition cost (CAC) and client lifetime value (LTV) to gain insight into the ROI of your sales and marketing spend.
Crunch the Numbers
It costs you $1,000 to acquire a new client that will generate an expected $1,000 in revenue over the course of 0 months, your average client lifetime.
This gives you an LTV:CAC ratio of 1:1. In other words, for every $1 you spend on getting a new client, you make $1,000 in revenue.