The Math · CLV
One customer’s true lifetime value.
Plus the 3:1 acceptable customer acquisition cost the CFO uses to gate ad spend.
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Inputs
Receipts
Customer Lifetime Value
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Acceptable customer acquisition cost (CLV / 3)
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If your CAC is higher than the number above, your unit economics are upside-down. Cut ad spend, raise prices, or extend retention.
How this is calculated
clv = avg_ticket × visits_per_year × retention_years × (gross_margin_pct/100)acceptable_cac = clv / 3— the 3:1 LTV-to-CAC rule of thumb
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