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The CAC/LTV Death Spiral
When you speak with anyone in the DTC space, they will usually have at the ready their Cost to Acquire (CAC) and Life-Time Value (LTV) metrics like a cowboy prepared with his sidearm. They are the lifeblood metrics for any Direct to Consumer (DTC) business. To quickly explain these numbers, the CAC is the total cost per customer to bring a new, purchasing customer into their business. The LTV is the presumed value customers will get from the company over time.
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DTC & Ecommerce Strategy
User Lifecycle Planning