LTV:CAC is a misleading metric to measure performance — here’s what to track instead

Published on February 22, 2023

How are you measuring sales efficiency and customer value? 

If you use LTV:CAC, you’re not alone. When I speak with founders about tracking metrics, 90%+ of conversations include this as a north star measurement of success: “4:1 LTV:CAC! We’re doing well.” 

But how can you be sure? 

Here’s my hot take on how LTV:CAC fails to accurately reflect the health of the business and how sales efficiency and customer success should actually be measured:

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