marketingE-commerce
LTV:CAC Ratio in E-commerce & Retail Tech
The ratio of customer lifetime value to customer acquisition cost, measuring acquisition efficiency.
E-commerce LTV:CAC Benchmarks
Low
1.5x
25th percentile
Median
2.5x
50th percentile
High
4x
75th percentile
Elite
5.5x
Top 10%
Repeat purchase rate is key
Higher is better
What Affects LTV:CAC?
Customer retention rate
Average order value
Purchase frequency
Upsell/cross-sell success
Customer acquisition cost
Product-market fit
How to Improve LTV:CAC
1
Focus on customer retention
2
Develop upselling strategies
3
Reduce churn with better onboarding
4
Optimize acquisition channels for quality
5
Build loyalty programs
6
Monitor competitor pricing and value
LTV:CAC in Other Industries
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