Customer Acquisition Cost (CAC) & LTV Analysis — Roadmap Step & Resou…
Whether you can profitably afford to keep acquiring customers at current cost
- Level: advanced
- Estimated time: 2 days
- Roadmap: Social Media & Performance Marketing
Before this step
Mini projects
- Calculate CAC and LTV for a hypothetical subscription product and assess whether current spend is sustainable
Interview questions
- What LTV:CAC ratio is generally considered healthy, and why?
Study resources
- CAC and LTV: The Complete Guide (Article) — Andreessen Horowitz's widely-referenced guide to CAC and LTV metrics.
- CAC and LTV Explained (Video) — Covers the relationship between acquisition cost and lifetime value.
Part of
- Analytics, Reporting & Budget Management — section
- Social Media & Performance Marketing roadmap — the full learning path